With the FSA stepping up its enforcement action over the last six months, a source, who wished to remain anonymous, suggested that although consumer-facing sourcing systems breached FSA rulings, the regulator did not have the resources to deal with the problem.
The source said: “Best-buy tables and sourcing systems for consumers fall under Financial Promotions, but the FSA does not have the manpower, or time to invest in the investigation.”
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However, Peter O’Donovan, mortgage manager at Bestinvest, indicated that tables and other literature was often the starting point for consumers, before heading to their broker. He said: “Best-buy tables are more of a personal issue, as the lowest rates aren’t always the best product. You would have to have a definitive set of questions to ask for best buy tables to come under regulation and, as all clients are different, you can come up with totally different sets of results. Best-buy tables are an indication of the products available, but they are not necessarily best for everyone.”
The FSA denied that websites and publications that used league tables would fall under regulation.
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