FSA regulatory approach under threat as BBA launches review
The Financial Services Authority's (FSA) principles-based approach to regulation has come under threat from a legal challenge brought by the British Bankers' Association (BBA).
According to law firm Davies Arnold Cooper, the FSA has the most to lose in the judicial review instigated by the BBA into how payment protection insurance (PPI) claims should be handled.
The review was called when the BBA filed papers at the High Court questioning the FSA's policy this summer, which came into force on 1 December. It also queried the Financial Ombudsman Service's approach to the issue.
The BBA has argued that the FSA has been using standards from its high-level Principles for
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