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Industry backs FSA on structured product intervention

UK regulator plans to ditch its 'light touch' approach by banning certain products as well as consider capping of management fees

UK Financial Services Authority proposals to increase scrutiny on structured products, which could lead to a potential ban on certain investments, has been warmly greeted by industry figures.

In a discussion paper issued today, the FSA said it may potentially ban products it believes could cause "significant detriment to consumers". Although an FSA spokewoman declined to list which products would be affected, the paper named "split capital investment trusts and structured products" as potential targets.

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