FSA's regime may be limited by EC's prescriptive rules.

Financial Adviser, November, 2007

There is a risk the European Commission could impose prescriptive rules on retail products, restricting the FSA's ability to implement a principles-based regime, an ABI director has said.

Hugh Savill, director of public affairs at ABI, praised the approach taken by the European Commission in its call for evidence on the impact of EU member state regulations for retail investment products.

However, Mr Savill said there would inevitably be overlap with the FSA's retail distribution review. He said it overlapped on RDR territory on issues of intermediation and commission disclosure. Mr Savill stressed that the EC was merely consulting but added: "It is probably the most significant EU document on the conduct of business rules for some time.

"It...

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