Tony Blair’s claim that the FSA is ‘hugely inhibiting of efficient business’ has been backed up by leading financial trade bodies, including the Association of Independent Financial Advisers.
The AIFA said in The Daily Telegraph today that FSA rules forced its members to supply clients with four separate documents before even entering into a conversation, followed by 12 further pages if they wanted to complete a sale that complied with the watchdog’s rules.
‘We all support effective regulation, but when it gets to the point that it is getting between a business and its customers, it is going too far,’ said director of policy Fay Goddard.
‘Reasonable firms are struggling with a huge weight of bureaucracy.’
The paper reported that the Association of British Insurers is also concerned that the regulator’s rules on the sale of general insurance products prevent customers buying vital cover.
‘If you look at general insurance regulation, there is a general concern that it is putting off customers from getting the sort of cover that they need, and putting too many barriers between customers and insurers,’ said head of communications Alan Leaman.
Over the weekend, the Treasury reportedly said that the chancellor was ‘at one’ with the prime ministers’ speech, however, a spokesman has said this week that the FSA is a ‘world-class regulator’.
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