FSA right to appeal against Tribunal decision on Fox Hayes to defend consumers and principles based regulation

10 April

The Consumer Panel supported today's decision by the FSA to seek permission to appeal the Financial Services and Markets Tribunal decision on Fox Hayes due to errors in law. 

The Consumer Panel is concerned that the Tribunal has taken a very literal interpretation of the rules and regulations in reaching its decision and the case could be seen as working against the FSA's move towards more principles based regulation.

Adam Phillips, Acting Chairman of the Financial Services Consumer Panel said:

"The Tribunal took too narrow an interpretation of the FSA's rules. As an authorised firm, Fox Hayes should not have approved promotional letters with an ulterior motive of gaining people's contact details for boiler rooms.  The Tribunal did not recognise the broader principle at stake of ensuring promotions are clear, fair and not misleading.  But it is crucial for the FSA's move to more principles based regulation that the Tribunal recognises principles in enforcement decisions."

Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on our website – www.fs-cp.org.uk.
   

3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.
   

4. There are currently eleven members of the Panel as listed below (for further information on individual members, see the Panel's website – www.fs-cp.org.uk)

   Adam Phillips (Acting Chairman)
   Kay Blair
   Michael Chapman
   Stephen Crampton
   Caroline Gardner
   Jenny Hamilton

   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart