FSA calls for greater transparency from its members
November 25, 2007
The UK’s financial regulator, the Financial Services Authority is calling for increased transparency from its member, and plans to introduce a paper that is designed to discuss the benefits of greater transparency from its members.
There have been calls from consumer groups for the FSA to name and shame members that breach any of its regulations. The FSA is due to release the paper on greater transparency early next year according to reports.
According to officials from the consumer campaign group, Which?: “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”.
This was seconded by officials from the National Consumer Council, who stated: “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 FSA has been slated for failing to identify the member companies that have breached FSA rules and regulations, but the authority has claimed that it is am ‘open and transparent regulator’. According to reports the regulator was asked to name twelve companies that were found to be mis-selling endowment mortgages by the Information Commissioner’s Office, but the FSA is appealing against these Freedom of Information rulings.
Alan Wright
25th November 2007
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