Liberal Democrats in Business

News and views from the Lib Dem Treasury, Trade and Industry Teams and the Liberal Democrat Business Forum

FSA Must Protect the Consumer

12.00.00am GMT Fri 4th Mar 2005

Commenting on the CPS report, Liberal Democrat Shadow Chancellor, Dr Vincent Cable MP said: "We need to get back to the original thinking which underlies the establishment of the FSA. This involved a dual approach to financial regulation in the UK.

"Regulation of wholesale industry - the City trading in international markets - needs to be secure against financial instability. But it should be "light regulation" so that growth and enterprise are not stifled. However, it is also essential to have a strong consumer protection after the disasters of Equitable Life and Endowment mortgages.

"The FSA concentrates too much on box ticking regulation and not enough on redress for the consumer."

"I am concerned that the Financial Ombudsman is too weak to protect consumers and a number of my constituents have found dealing with the Ombudsman extremely unsatisfactory.

"In its review of financial regulation the Government must strengthen consumer protection."

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