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FSA admits huge risks in principle-based regime

The FSA says there are huge risks and barriers ahead for the industry and regulator before a principle-based approach is successfully implemented.

Speaking at the Mortgage Expo, head of mortgages and credit unions Michael Lord said there was genuine concern from industry, consumer groups and the regulator about implementing the regime.

But Lord said regulating through the 11 proposed principles rather than a prescriptive regime is the only sensible way forward to ensure appropriate regulation.

He said the FSA would look to address the danger of the FOS being handed a huge rise in power and influence under the new regime by laying down precedents though its rulings that could rewrite the rulebook.

Lord said: “There are huge risks and hills to climb in implementing this principle-based regulation. This approach carries risks.”


Balls unsure about future of advice

New Treasury economic secretary Ed Balls told the Treasury select committee this week he is unsure about the future of basic advice and that changes are needed to ensure better balance between simplicity and regulation.

Newcastle merges with rival as society consolidation continues

Universal and Newcastle Building Societies will merge at the end of the year. The enlarged society will remain a mutual and will be named Newcastle Building Society.?Under the merger, current Newcastle chief executive Colin Seccombe will be CEO of the enlarged company. Universal chief executive Kevin Robinson will be appointed director of integration, a non […]

Boulger slams flexible loan claims

John Charcol senior technical director Ray Boulger says some lenders are misusing the word flexible to lure customers into buying lifetime mortgages. Boulger criticises Prudential for calling its lifetime mortgage flexible when he says it is a drawdown product. He says it is a market problem, not just confined to Pru, and it would help […]

Leaked letter reveals DWP pressure to retain RU64

The Department for Work and Pensions is pressurising the FSA to retain the RU64 rules ahead of this week’s White Paper which will set up the national pension savings scheme. The FSA was expected to abolish RU64, brought in to accompany stakeholder pensions, at a board meeting this week. In a letter to Work and […]


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