24 May 2007, 14:20 PM
  • The Financial Services Authority (FSA) has warned small retail firms they should comply with the organisation's regulations or risk running into trouble.

Stephen Bland, the FSA director of small firms, says, “Our focus is on changing firms’ behaviour to benefit consumers. We identify and prioritise risks and mitigate those risks by taking specific action against individual firms. We also conduct industry-wide sampling exercises to look at specific issues, which enables us to communicate the results to benefit the market as a whole. Firms that are not trying to comply with our requirements should be aware they could be visited at any time.”

He explains that the perception that small retail firms could escape the FSA’s attention was wrong and could even tarnish the industry. The organisation’s approach to regulation enables it to supervise a large number of small firms effectively and to take appropriate action against those posing a significant risk to consumers.

“We are sending a very clear message that small retail firms are not under the radar. Our regulatory approach is based on giving help to firms who run their businesses while treating customers fairly and endeavouring to do the right thing – but coming down hard on those who don’t,” Mr Bland adds.

The FSA regulates the financial services industry and has four main objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.