The Investment Management Association (IMA) has published on its website its response to FSA Consultation Paper 08/19: Regulating retail banking conduct of business (CP08/19).
The IMA states that overall it supports the new framework to regulate the way that banks treat their customers. However, the IMA is concerned that the draft rules do not go far enough in respect of more complex products such as structured deposits, and do not touch on many aspects of their distribution where there is potential for consumer detriment.
Richard Saunders (Chief Executive, IMA) stated: “Products such as structured deposits are marketed as equivalent to investment funds; therefore there should be a level playing field, both from a consumer protection and a competition viewpoint. This is not to say that there should be identical rules for their distribution, but the level of protection should certainly be comparable in relation to product features, costs and risks.”
View IMA calls upon FSA to regulate structured deposits, 4 February 2009