FSA to toughen consumer protection over mis-selling of financial products

The head of the Financial Services Authority is to announce plans to toughen rules governing promotional materials and branch communications as one of a number of measures aimed at protecting consumers from being mis-sold financial products.

Hector Sants, chief executive of the FSA, is expected to call for its members to stop risky products being sold, rather than just pay out compensation when the damage has already been done, later today (12 March).

The move comes after investors compalined about having been hit by a number of mis-selling scandals in recent years.

Sants, who is stepping down from his position at the FSA in the summer says he is keen to push proposals through that give consumers better protection when buying mortgages, pensions and investment products.

This will be achieved by giving the regulator more power to vet risky products before they go on sale to the public.

The FSA says that by doing this, it is hoped that they can restore public trust in the financial services industry after an increase in the number of complaints surrounding mis-selling scandals including personal pensions, endowment policies, split capital investment trusts and payment protection insurance.

Earier this week, the FSA warned the public that bank accounts which charge fees for extra benefits such as insurance may be being mis-sold.

And yesterday, financial services industry watchdogs proposed the creation of a joint committee to improve customer experience and rebuild confidence in the beleaguered sector, aiming to “identify any risks with the potential to turn into widespread problems”.

The Conservatives want to scrap the FSA and hand some of its powers to the Bank of England if it wins the election.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here