View more on these topics

Panel against ban on complex plans

The Financial Services Consumer Panel says it would be wrong for consumers to be banned from accessing more complex products.

In an interview with Money Marketing, chairman Adam Phillips says the FSA should focus on product design rather than product regulation and that complex products should not be withheld from consumers.

FSA chairman Adair Turner last week questioned if some products are too complex to be sold to consumers and if the FSA should intervene on pricing.

But Phillips says: “In principle, we do not think anybody should be stopped from buying anything. People have a right to do what they want. The panel is talking more about product design rather than product regulation. Product regulation has overtones of price regulation.

“We need to go back to the idea of straightforward, simple products, where the characteristics can be fairly clearly exp-lained to the consumer so that they can exercise choice.”

Phillips says the panel is not in favour of maximum loan to value limits on mortgages. “There are going to be people who need more than 100 per cent mortgages and it is a very blunt instrument to limit maximum loan to value,” he says.

He is also calling for clear guidance from the FSA on arrears and repossessions.

Recommended

Crash caller

In 1997, Fred Harrison wrote to the Government and warned that it had 10 years to try to stop an impending global depression.

L&G launches two new online tools

Legal and General has launched an online business valuation tool to help SMEs calculate how much shareholder or partnership protection they need.

1

FSA stress tests life offices

The FSA subjected life assurance companies to stress tests earlier this year in order to judge the level of resilience of their capital bases, according to press reports.

Life begins at…

By Fiona Holmes, proposition communications manager Having reached a certain age (it’s the new 40 by the way), I’m having to come to terms with the fact that my peers and I aren’t as immune from illness or death as we’d like to think. That’s the problem with 30 being the new 20 and 40 […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment