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01 November 2011

IFAonline: Sants admits FSA accountability issues; apologises for RDR response


Hector Sants, chief executive of the Financial Services Authority (FSA), has admitted accountability issues with parliament and apologised for ill-feeling caused by the FSA's refusal to delay the retail distribution review (RDR).

In July, the Treasury Select Committee (TSC) recommended the FSA delay the RDR by a year and to take a case-by-case approach to allowing grandfathering. The FSA rebuffed all of the TSC's recommendations, on the same day they were published by the MPs.

In a TSC evidence session on the Financial Conduct Authority (FCA), which will replace the FSA, conservative MP Mark Garnier demanded an explanation from Sants. Garnier said the speed with which the FSA responded to the report suggested it had not properly considered the proposals. "Some feel your response to our RDR report holds this committee and parliament in contempt", Garnier said.

Sants replied: "I am very sorry if we gave that impression. We felt under media pressure to respond. We were afraid the press would report that the RDR was delayed, and the option of considering your recommendations would be taken from us"."We want proper accountability to the TSC and parliament", he added.

Full article



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