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FSA set to get new powers for generic reviews

The FSA may get new powers to demand generic reviews of past financial sales without Parliamentary approval if the Financial Services Bill is passed before the election.

Under the current rules, the FSA must gain approval from the Treasury and both the houses of Commons and Lords before it can order a widespread review.

Lansons director of regulatory consulting Richard Hobbs says the new proposals on consumer detriment would give the FSA the power to order a generic review of past business without consulting Parliament. He says the reviews could be costly for IFAs.

The Lords’ amendments to the bill are due to be considered in the Commons this week and the bill will have to be finalised by Monday, April 12 when Parliament is dissolved.

Hobbs says the Conservatives are unlikely to prevent the bill from becoming legislation to avoid being labelled anti-consumer. He says: “This is seen as a pro-consumer measure and in the run-up to the general election, none of the parties wants to appear to be anti-consumer.”

Royal London head of corporate affairs Gareth Evans says the FSA stands to gain a number of new powers under the bill but warns: “It is not clear what checks and balances will be in place to accompany them.”

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. Er…what about the Henry VIII clause in the FSMA 2000 and the many other Acts passed since 1997?

    Am I under the false impression that just one of Her Majesty’s Ministers can give the FSA any powers it wants at the stroke of a pen?

    Ah well, does it matter?

  2. Incompetent Regulators Awards Team 7th April 2010 at 3:54 pm

    More powers will mean more reason for the Conservatives to scrap such a corrupt organisation. Bring on election day and get rid of the rot at Canary Wharf. I expect all IFAs to lobby like mad to the Conservatives and hard on heels MPs for FSA scrappage otherwise there will be nearly 20,000 of us on the scrap heap including AIFA.

  3. … and will it follow then that they can levy retrospective fines and penalties (with accrued interest cf HMRC and income tax u/paid) … ??

    Huzzah!!

    So all those IFAs who thought they could rest/retire in peace … think on!!

    After all, they won’t chase the Banks/Insurers for fines, etc (or will they??) … and they need to expand their coffers for bonuses, salary rises next year (for doing a great job of extinguishing IFAs THIS year), HS leaving pressy, 5* accommodation ‘slush fund’, etc (tic)

    And how far back are they proposing to go – HMRC is 6yrs for tax investigations… ??

    Oh boy … and they complain of not being able to get new recruits to the sector … knows the bl**dy wonder!!

    IFAs=dead in the water; Banks=high pressure sales (not advice); Tescos/Asda=world domination, mass-market fodder … etc

    I certainly wouldn’t recommend anyone come into this industry …

    (oh, and for all those members of the public reading the blog, you may think IFAs are crooked/greedy/etc. but just wait until you’re left with only the Banks or Tescos/Asda in a few years time … have fun!!)

  4. I normally refrain from being very rude to anyone, however I will make an exception here. When power is handed out to none accountable *ankers and Parliament is no longer required, the only thing you get is Anarchy. I have served my country as a Soldier against Communism, I have defended our democrocy and freedom of speach, so why do the Treasury (Mr Darling) want to take away our democratic rights????. Mr Darling, Mr Brown go back to Scotland, (I feel very sorry for many good friends I have there, who do not want them back to screw up Scotland) and retire with the very large final salary pension schemes that you have denied the private sector! YES I AM ANNOYED

  5. If you allow your mind to dwell on the thought that the prime directive of the FSA is to crush the IFA sector then a whole lot of things fall into place.

  6. I normally refrain from being very rude to anyone, however I will make an exception here. When power is handed out to none accountable *ankers and Parliament is no longer required, the only thing you get is Anarchy. I have served my country as a Soldier against Communism, I have defended our democrocy and freedom of speach, so why do the Treasury (Mr Darling) want to take away our democratic rights????. Mr Darling, Mr Brown go back to Scotland, (I feel very sorry for many good friends I have there, who do not want them back to screw up Scotland) and retire with the very large final salary pension schemes that you have denied the private sector! YES I AM ANNOYED

  7. The sooner a test case of some sort is put in front of the European Court for the pursuance of human rights the better.

    What do they say about absolute power?

  8. Just when you thought it couldn’t get any worse ! Democracy in this country is dead, if there ever was any democracy. With hundreds of quangos like the FSA and unelected fraudsters like Mandelson running things, you would have to be completely insane to think that we live in a democracy.

  9. So … no 15 year long stop going forward, and now an added ability to also travel backward in time and space?

    Errrmmm …????

    Daleks have little, if any, individual personality, ostensibly no emotions other than hatred and anger and a strict command structure in which they are conditioned to obey superiors’ orders without question.

    The resulting creatures are a powerful race bent on universal conquest and domination, utterly without pity, compassion or remorse.

    “Exterminate! Exterminate!”

    Errrmmm … remind you of anyone? Nah, it’s just coincidence, innit?

    It is, innit?

  10. PS: Before anyone thinks I was simply being whimsical about “Financial Services Aliens …

    Double check the article heading – “FSA set to get new powers for generic reviews”

    – focus on “generic” then check out the letter to the right of “R” on your keyboard.

    When someone said “People should be very frightened of the FSA” … maybe just one typo separates you from a whole new way of deciding if you are “fit and proper”?

    Did I hear anyone mention “compulsory examinations”?

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