The Financial Services Practitioner Panel has criticised the FSA for failing to take into account the principle that consumers must be responsible for their own financial decisions.
In its Annual Report published this week, the panel of industry players whose role it is to shadow the FSA said it hoped the regulator would take this principle more into account in 2003.
The report also criticised the number of initiatives coming from the FSA saying it was adding unreasonable costs to providers.
Panel chairman Donald Brydon, who also chairs Axa Investment Managers, says: “The Financial Services and Markets Act of 2000 states that the FSA must have regard to the general principle that consumers should take responsibility for their actions. The Panel has the sense that in the FSA's work in the consumer field the FSA takes this aspect of the Act insufficiently into account in determining its actions.
“The Panel hopes that in 2003 it will see increasing reference from the FSA to the need for consumers to take responsible action in their financial decision making alongside those advocating better selling practices from practitioners.”