|
|
Article: Regulator, heal thyself; The Financial Services Authority.(Teething troubles at Britain's financial regulator)
- Article from:
- The Economist (US)
- Article date:
- January 22, 2005
CopyrightCOPYRIGHT 2005 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Teething troubles at Britain's financial regulator
TO BE effective, a financial regulator needs three things: a sound operating structure; sensible procedures and competent staff; and credibility so that wrongdoers are properly punished and others deterred. There are worrying signs that the Financial Services Authority (FSA), now Britain's only financial regulator, is falling short on the latter two counts.
This week an independent tribunal made stinging criticisms of the agency's handling of a case involving the alleged mis-selling of endowment mortgages by Legal & General, a big insurer). While accepting the FSA's verdict that there had been ...