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Call for FSA probe into structured products

Conservative Treasury select committee member Philip Dunne says the FSA should look at how structured products were advertised to ensure guarantees were clearly explained.

Speaking to Money Marketing at the Conservative Party conference in Birmingham, Dunne says a guarantee was only as good as the guarantor and warned that to some extent this is a commercial decision for the person buying a product.

But he adds: “The FSA might like to take a look at the nature of the guarantees provided and whether they were clear.

“If you advertise a guaranteed return, then, to a degree, it is caveat emptor and partly the question would be whether these were held by retail inv-estors or more sophisticated investors.”

Dunne says he fears there may have been bad practice in the self-certification sector of the mortgage market.

He says: “I suspect there has been some pretty loose practice undertaken and I think that is something worth having a look at.”

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