FSA warns City against rip-offs

FINANCIAL firms must work harder to align their business models with the interests of customers rather than pursuing “aggressive” approaches that could result in mis-selling, the FSA has said.

In its assessment of the risks facing consumers, the City watchdog said that increasing complexity of products and cost-cutting has increased the risk of customers being ripped off.

The FSA’s Martin Wheatley also revealed that he is not a fan of the UK’s predominant retail banking model of “free banking”.