Wednesday, 25 April 2012

Quick post: FSA's banning hunger.

The FSA is cracking down on the sale and marketing of Traded Life Policy Investments of "TLPI" to Retail Clients. Although it is clear that TLPI are not suitable products for everyone, this attack on the freedom of individuals (including all sides: clients, intermediaries and providers) looks like another move forward in the more intrusive attitude that the FSA has been implementing recently. The Big Fish, in a previous post, warned of the risks and the consequences of the "more intrusive supervision" approach by the FSA.

The FSA has been continually warning (even as recently as last 18th of April) of its intentions to begin banning products if it considers them to be unsuitable for the public and this is just another step in that direction, although instead of using a straight ban, the FSA seems to be testing stakeholders reactions by performing a veiled veto. It is difficult to read the future and see where all this will end, but this is certainly fulfilling its purpose: to send a clear message to everyone that the FSA is not joking, it is going to restrict the freedom of financial sector players and therefore you should either change profession or leave the UK.

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