The FSA is proposing wide ranging powers which will see the Financial Conduct Authority able to issue warnings, introduce rules that sales must be advised, amend promotional materials and/or charging structures, ban product features and “in rare cases” ban the sale of some products altogether.
In its latest News & Views, the CML said: “We are concerned that the grounds on which the FCA could intervene are not as clear as they should be - and that this is unhelpful for firms and consumers.
“Clarity would enable firms to plan product development in a more certain environment and with a better understanding of regulatory expectations.
“We urge the regulator to use the final policy statement it will publish following its consultation to provide more information and greater clarity about the risks it is seeking to address, how and when it proposes to intervene, and the evidence it will require before deciding to use its powers.”
The FSA is currently consulting on the new rules with a final version of the statement expected on 1st April.
