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Regulator aiming to block misselling

Aifa
Aifa director general Chris Cummings (right) makes a point to the FSA’s Rory Percival as Standard Life’s Mark Polson looks on

The regulator says its work on wrap is seeking to avoid widespread misselling triggered by the use of platforms.

It says platforms are coming under scrutiny as part of its more proactive regulatory strategy.

FSA chief executive Hector Sants outlined the shift away from reactive to proactive intervention at a speech in March. Sants said at the time:

“We will now seek to proactively intervene earlier in the product chain to anticipate consumer detriment and choke it off before it occurs.”

Rory Percival, an associate from the FSA’s pensions and investments team, said regulation of the platform market is subject to this kind of more intensive regulation. He said: “One of the key elements of the FSA’s conduct strategy is around prevention and crystallisation of risks within the market and our approach to platforms very much reflects this. We are very keen to avoid widespread misselling or misuse of platforms.”

An FSA spokesman says: “As part of our new conduct strategy, with any consumer-facing product we would hopefully get involved earlier in the process and look at products before they are released. That would apply to new platforms coming to the market.”

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