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."

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Notes to editors