Material on the website, entitled "Identifying and Responding to Emerging Retail Risks", is the first time the FSA has been transparent about how it identifies potential issues and what it is currently working on. The information will be regularly updated to include results of work undertaken and new emerging risk. The work contributes to achieving the FSA's aim to help retail consumers achieve a fair deal.
Anna Bradley, Consumer Sector Leader at the FSA said: "This risk identification work is all about being on the front foot; protecting consumers by identifying the issues today that could become problems tomorrow.
"We hope that by being open about the work we are doing on emerging risk we will encourage all our stakeholders; firms, trade associations, consumers groups and consumers themselves to contribute intelligence to us, identifying risks they think we should be addressing."
Some of the current and recent issues the FSA has considered are:
• Payment Protection Insurance
• Mortgage Disclosure Documents
• Contracting out of the state second pension (SERPS/S2P)
• The Child Trust Fund
• Venture Capital Trusts
• Premium and variable interest rate reviews
• Distribution Bonds
• Financial Promotions
The work on emerging risk is part of thematic activity at the FSA; identifying risks arising across different types of firms and market sectors and mitigating them where the risk-based approach justifies doing so. Thematic activity is, of course, only part of the FSA's risk-based work; a core part is with individual firms taking steps to mitigate risks with the firm concerned.
