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CA claims half the rulebook could be scrapped

The FSA should scrap much of the regulation which burdens the industry with high costs and replace it with greater product supervision, says the Consumers&#39 Association

Senior policy adviser Mick McAteer is calling for the industry, the regulator and consumer groups to establish a working party which will review the level of regulation affecting the industry.

In his speech at the FSA open meeting on polarisation, McAteer said that up to half the current rulebook could be scrapped and replaced with risk-based product regulation.

McAteer said it would be up to the industry to identify those areas which it felt were particularly onerous as it is the industry which complains that the cost of regulation forces it to charge consumers higher charges on financial products.

He believes the charging structure in with-profits products as well as others such as income protection, income drawdown, equity release and annuities should be covered by direct product regulation.

McAteer said: “This is a bargain we would be keen to strike. We do not believe a lot of the compliance rules have actually helped the consumer, they have just burdened the industry with unnecessary costs.

“Let&#39s have more product regulation and in exch-ange let&#39s scrap half the current rulebook.”

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