In April 2013 the Financial Conduct Authority (FCA), the successor body to the Financial Services Authority (FSA), will commence its work. The FCA will have the power to make temporary product intervention. To ensure that the FCA’s approach is clear and understood by April 2013 the FSA launched a consultation on the FCA’s approach.
Such a temporary product intervention will only be made, in cases:
- where a product is in serious danger of being sold to the wrong customers, for instance where complex or niche products are sold to the mass market;
- where a non-essential feature of a product seems to be causing serious problems for consumers;
- where a product is inherently flawed.
Martin Wheatley, managing director of the FSA and CEO-designate of the FCA, said: “Making temporary product intervention rules is not something that we expect to do often but having this power means we can act quickly and decisively.”
Further information: http://www.fsa.gov.uk/library/communication/pr/2012/107.shtml