Sheila Nicoll spoke on product intervention and EU engagement as part of FSA’s consumer protection strategy. She explained work FSA has already carried out to enhance consumer protection, including carrying out more comprehensive analyses of firms’ business models, products and distribution strategies, and its supervisory enhancement programme. It has also realised it will have to intervene in markets in a more intrusive way, as it has shown in the Mortgage Market Review (MMR) and Retail Distribution Review (RDR). She discussed FSA’s enforcement actions and the need for strong compensation and complaints procedures. She moved on to discuss FSA’s proposals for product intervention and outlined some characteristics FSA has noted of products most likely to present risks to consumers. She said FSA thinks there probably is a need for product intervention but that this approach brings with it risks. Finally, she discussed FSA’s involvement in the European Supervisory Authorities and FSA’s view that minimum harmonisation EU legislation is preferable to maximum harmonisation for the purposes of consumer protection. There are several reasons for this, including the lack of appetite of consumers for cross-border retail financial services. (Source: Speech)