Chairman Ken Davy says: “The announcement that the Conservatives propose to abolish the FSA is a welcome breath of fresh thinking which I believe will benefit commerce and consumers as well as the whole of the financial sector.
“Ironically this is not because of the abolition of the FSA itself but rather the much clearer focus the new structure will bring to the issues of financial stability and consumer protection.”
Davy says giving the Bank of England responsibility for financial stability combines the Bank’s experience of the key issues with the authority to manage them and should be welcomed.
He says: “Equally, a strong new Consumer Protection Agency with a focus on transparency and including things like the sometimes horrendous cost of credit for many consumers is much more than changing the name above the FSA’s door and is an outstanding innovation.
“It should be noted that these proposals combined with the certainty of a general election in less than a year shine a spotlight on the RDR. Particularly the unseemly haste with which the FSA is trying to steamroller the far reaching, radical and expensive RDR proposals through.
“I repeat my call for the FSA to pause so that the full implications of the RDR on consumers can be properly considered and researched. Such a pause would also enable the grossly underestimated costs of the RDR to be fully examined and any changes linked in with likely EU legislation in 2014.”