Policy director Andrew Strange said the “twin peaks” approach to FSA reform is important but said other regulatory failures in social policy myst also be addressed.
“We have supported Mark Hoban’s recent comments on consumer responsibility, but are concerned that the term consumer champion for the CPMA detracts from this important objective. We must be clear about the responsibility of all market participants in financial transactions,” says Strange.
AIFA says it welcomes the introduction of a regular audit of the watchdog’s accounts as “necessary checks and balances” and welcomes the statutory footing of the Small Business Practitioner Panel.
Costs continue to be an issue, it says, with a barrage of regulatory changes due by 2012.
“A further £50 million of indicative costs needs to be fully considered and weighted appropriately.”
“The proposed changes to the Financial Services Compensation Scheme are also an interesting development given the current review of the funding model of the scheme. There are also three separate European directives or papers that impact on this area. While SMEs paying for bank defaults is entirely inappropriate, cross subsidisation of providers in cases of product failings remains crucial in providing a safety net for consumers,” says AIFA.
