View more on these topics

Former FSA deputy chair calls for liability for providers

Providers should be held responsible for the development of flawed products, says former FSA deputy chair Dame Deirdre Hutton.

Hutton was appointed to the FSA board when the regulator was set up in 1997 and stepped down as deputy chairman in 2007. Speaking as part of a panel session at the FSA’s conference on the Financial Conduct Authority, Hutton said: “I believe that too often the liability issues in financial services are solely seen as between the consumer purchaser and the IFA seller. I think the liability should go back up the chain to the people who manufacture the products. If an IFA is given a duff product to sell then I think the manufacturers should bear some liability.”

Hutton’s comments followed a question from a conference delegate who raised the issue of consumer responsibility.

The delegate said: “I would like to see customers taking responsibility. There seems to be a lot of discussion about the protection of customers, but frankly dealing with a customer who is refusing to take responsibility for their actions is extremely difficult.”

But Financial Services Consumer Panel vice-chair Kay Blair dismissed the argument that consumers should assume some responsibility for the products they are buying.

She said: “The financial services industry is very keen to heap additional and often hidden risk on to consumers through hidden charges and now it wants to heap additional responsibilities on them.

“We live in an age where we have a very complex and sophisticated financial services industry that can run rings around consumers, so I would certainly reject additional obligations being put on consumers.”

Recommended

Bond firms set to cut fund duration

Bond managers are cutting the duration on their funds in anticipation of an uplift in the UK economy towards the end of the year. Henderson head of fixed income John Pattullo, who manages the £1.1bn strategic bond fund, says he expects to move to a one-year duration within two years. He says: “The duration is […]

Credit Suisse launches £482m securitisation

Credit Suisse has launched a £482m securitisation backed by a pool of UK non-conforming mortgages originated by UK sub-prime and specialist lenders. The lenders include GMAC-RFC, Mortgages plc, Edeus, Wave Lending and Platform. The transaction, called Alba 2011-RP1, sees two AAA-rated tranches worth £274m publicly placed. Credit Suisse is pricing the deal at one-month Libor […]

Adviser Fund Index

Strategic bond products were popular among Adviser Fund Index panellists during the May rebalancing. Investor demand for flexible fixed-income mandates has strengthened in recent years and the trend was particularly noticeable in the Cautious benchmark. Artemis strategic bond was selected for the first time by two advisers while M&G optimal income and L&G dynamic bond […]

Up and running

Simon Somerville, manager of Jupiter Japan income, exper-ienced first-hand Japan’s earth-quake in March. He was in a taxi in Tokyo and watched in fear as skyscrapers swayed for nearly five minutes. He also conveyed the sense of calm following the earthquake as people carried on with their daily lives. Buildings stood up well to the […]

Nigeria cover image - thumbnail

White paper — Nigeria International Insights

Jelf Employee Benefits closely examines healthcare provision and challenges within Nigeria. This will be of particular interest to HR decision makers with employees based in Nigeria, and assesses the environment, risks, facilities and safeguards that are relevant to organisations that are actively deploying expatriate staff in this location.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. What’s good for the goose….
    The FSA should also have some resposibility too and not the immunity we are told they have at present, otherwise they will never learn either.

Leave a comment