The Consumers Association says the FSA's proposals for lighter touch regulation must include suitable regulatory protection.
The CA is warning the regulator that its proposals for face-to-face and telephone selling of a simplified suite of investment products must not lead to another misselling scandal.
Consumers' Association public affairs officer Delroy Corinaldi says:”Each option put forward by the FSA today must be judged against whether consumers will be faced with another mis-selling scandal in the future, as there is scope for mis-selling Sandler products just like any other.
“Sandler's proposal for a lighter-touch regulated sales process for stakeholder products will not prevent mis-selling. The FSA must grasp the opportunity to put in place a suitable and appropriate sales regime.”