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Financial Services Consumer Panel warns FSA over investment changes
26/02/2007
The Financial Services Authority (FSA) is to receive a note from the Financial Services Consumer Panel stating that its proposals to amend the stock exchange listing rules for offshore investment firms could be risking investor protection.
Such a move to attract non-UK-based companies to list on the London Stock Exchange (LSE) could damage the overall market, according to the consumer panel.
Despite enhancing the LSE's attractiveness to private equity vehicles and those looking to follow strategies of alternative investment, a range of consumer protection measures could be lost following the changes, the group argues.
John Howard, chairman of the Financial Services Consumer Panel, remarked: "We think that, with its current proposal, the FSA is at risk of making a serious mistake that will be damaging for investors and damaging for the confidence of the market."
Furthermore, there may be "a lighter touch regime" for firms that pose the greatest potential risk for investors, he added.
Such a move to attract non-UK-based companies to list on the London Stock Exchange (LSE) could damage the overall market, according to the consumer panel.
Despite enhancing the LSE's attractiveness to private equity vehicles and those looking to follow strategies of alternative investment, a range of consumer protection measures could be lost following the changes, the group argues.
John Howard, chairman of the Financial Services Consumer Panel, remarked: "We think that, with its current proposal, the FSA is at risk of making a serious mistake that will be damaging for investors and damaging for the confidence of the market."
Furthermore, there may be "a lighter touch regime" for firms that pose the greatest potential risk for investors, he added.