FSA's Tiner at Treasury Committee: Financial Services Industry Playing Russian Roulette

5.10.13pm GMT Thu 4th Dec 2003

The Financial Services industry is playing 'Russian roulette' with its customers with regard to the selling of endowment mortgages, according to John Tiner, Chief Executive of the Financial Services Authority, giving evidence to the Treasury Select Committee today.

In response to questions from Liberal Democrat Committee Member, Norman Lamb MP, Mr Tiner said that the FSA had to act more quickly to put an end to the cycle of miss-selling which was damaging confidence in the financial services industry.

Mr Lamb said: "Mr Tiner has made a welcome admission of the scale of the problem facing the financial services industry."

"The catalogue of miss-selling scandals, from precipice bonds to endowment mortgages, is having a serious effect on the confidence the public has in investing. If the industry is playing 'Russian Roulette', it must remember it is doing it with other people's money.

"The FSA has been slow to react in the past. I hope Mr Tiner will act to ensure that in future, the FSA will be on top of potential problems before they manifest themselves."