Risky financial policies could be banned under proposed FSA powers

Exploitative investment products may be prohibited by the FSA before they reach the market. More powers may be granted to the FSA to prevent consumers from being taken advantage of by poorly constructed financial policies. The Financial Services Authority may be able to ban the sale of risky financial policies to the public in order to protect consumers from toxic products under a new consultation paper. The proposals would add to the FSA's existing powers allowing it to prevent high-risk damaging investments from reaching the public before they have a detrimental effect on people's finances. It is hoped this new "intrusive approach" would put a stop to "exploitative" investment policies.