Prudential UK & Europe deputy chief executive Barry O’Dwyer has written to 2,000 staff slamming the FSA’s approach to policy-making, including its stance on legacy commission post-RDR.
In an email, seen by The Sunday Telegraph, O’Dwyer says while the FSA’s new legacy rules are “not perfect”, some of the proposals the regulator put forward during the consultation would have been “horrendous for customers” and Prudential fought against “some of their more ludicrous suggestions”.
O’Dwyer also criticises the FSA’s Financial Services Consumer Panel, saying it has too much power over new regulation and mentioning the regulator’s new guidance on with-profits funds as an example.
He says: “It became clear to me how much the personal prejudices of some key individuals can determine the direction of regulation. As with the treatment of legacy products on RDR, evidence sometimes seems to be over-ridden by prejudice.”
O’Dwyer goes on to say that Prudential will ramp up its lobbying efforts over legislation it deems to be “ill-judged”.
O’Dwyer adds he is meeting with Alex Salmond in Edinbugh this week to discuss the implications of Scottish independence and how it would affect Prudential’s regulation.