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FSA seeks to improve consumer protection

Hector Sants, the head of the Financial Services Authority (FSA), is to announce plans for the regulator to toughen up protection for consumers over financial products.

Mr Sants believes that the FSA needs to stop risky products being sold, rather than just pay out compensation when the damage has already been done, the BBC reports.

Speaking to the BBC he suggested that "we'll...need to step up our ability to see mis-selling before it has come too widespread, and that will require us to make more on site inspections both as FSA inspectors but also through mystery shopping where we pose as consumers."

With Mr Sants due to step down from his post this summer and with the Tories expected to reduce the FSA’s regulatory powers should they get into office, a degree of uncertainty hangs over the proposals.

However, the BBC's business correspondent Nils Blythe says that the FSA's proposals are likely to be implemented whatever the structure of regulation in the UK under a new government.

 

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