FSA to publish paper on greater transparency
November 19, 2007 by admin
Filed under News, News-Mortgages
The Financial Services Authority is to publish a paper on greater transparency next year, stating that the aim of the paper is to discuss the “purpose and possible effects of greater transparency”.
The paper is to be published early next year according to officials from the Financial Services Authority. This comes amidst calls from consumer groups for the FSA to name and shame financial companies that do not adhere to its rules.
The FSA has described itself as an “open and transparent regulator”. However, campaign groups state that the regulator must start naming and shaming those that breach its rules and regulations. The Financial Services Authority has come under fire for not naming the companies that fail on mystery shopping exercises or those that are found guilty of mis-leading advertising.
An official from campaign group Which? stated: “We think additional transparency is essential. Keeping things secret doesn’t help the consumer. We need more effective enforcement, the imposition of higher fines and greater use of naming and shaming. If the FSA can hit companies’ reputations as well as their bottom line, it offers a strong incentive to comply with regulation”.
The National Consumer Council agreed, with one official stating: “As a matter of principle, consumers have a right to know whether or not firms comply with the rules and treat customers fairly. Regulators hold much information that would equip people to make better decisions. We hope the FSA’s discussions lead to speedy action – information is a powerful tool in consumers’ hands.”
The Information Commissioner’s Office recently ordered the FSA to name twelve companies that were accused of selling endowment mortgages with inappropriate charges. The FSA is appealing against the Freedom of Information rulings made by the ICO.
Tom Smith
19th November 2007
