FSA Apologises For Failures
The chairman of the Financial Services Authority (FSA), Callum McCarthy, has apologised over its heavy handed approach to regulation.
McCarthy said that he accepted that the FSA had been dogged by "failures", but claimed it had now made reforms.
"The review of the FSA's enforcement procedures we completed last year shows that when we recognise failures in our processes we will seek to remedy them.
I regret that it took us so long to recognise the legitimacy of concerns expressed to us that these processes were not fair to those subject to them."
The apology comes in the wake of the fiasco with Legal & General, which took the FSA to the Financial Services & Markets Tribunal after it was fined £1.1m for mis-selling endowment mortgages. The tribunal ruled the fine had been twice as high as was justified.
Meanwhile, the holders of these useless underperforming products continue to face shortfalls.