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Watchdog focuses on products
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The Financial Services Authority yesterday expressed concerns about the way products such as payment protection insurance and child trust funds are being sold.
The City watchdog said it is concerned about nine aspects of the retail sector that it is scrutinising.
In addition to payment protection insurance and child trust funds, the FSA pin-pointed contracting out of the state second pension, venture capital trusts, reviews of health-related long-term insurance, income withdrawal pension, distribution bonds, mortgage disclosure documents and the way financial products are promoted.
This is the first time the FSA has highlighted areas of concern in the retail market.
"We hope that by being open about the work we are doing on emerging risk we will encourage all our stakeholders, firms, trade associations, consumer groups and consumers themselves to contribute intelligence to us, identifying risk they think we should be addressing," said Anna Bradley, consumer sector head at the FSA.
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