The Financial Services Authority is the governing body for the financial sector. Although they have had their hands full with dealing with the list of things that have evolved since the start of the global credit crunch and bankers scandal, and although they normally take a very back seat when it comes to matters that fall outside their realm, it appears that the increase in new product design projects has caused the agency to get involved.
Lord Turner who is the FSA Chairman expressed his concern at how product design issues in the past had been dealt with. “We’ve had a whole series of customer complaints and lots of settlements and money paid out. That isn’t good for consumers or the industry.”
Obviously new projects need significant invest to get them off the ground as can be seen from the television show Dragon’s Den, which appears on primetime BBC programming. The Financial Services Authority has clearly decided that there needs to be more done to protect investors against loss of investment in unplanned and uninsured projects.
Lord Turner will put it to the board at a meeting later this month and will ask the question to the board members whether they have got the current format correct, or should they take a more active role and in fact become product regulators?
Whatever happens there will be a number of potential inventors around the UK listening on with interest to the FSA’s findings.