FSA eyes a ban to protect consumers

The Financial Services Authority is considering banning some consumer products as part of an effort to prevent mis-selling.

It published a discussion document suggesting it toughen up regulations on more-complex investment products that might be deemed "generally unsuitable" for the mainstream retail market.

Leveraged exchange-traded funds are among the suspect areas.

FSA chairman Lord Turner said: "The way we do things now is not good. We may have to put what is expected into rules to make it easier for us to say what is not (acceptable)."

The Government plans abolish the FSA in favour of a new system of financial supervision which will include the creation of a separate consumer protection and markets authority.

"This is a radical shift. We've made part of the shift already... but now we are asking how radical we should be," Lord Turner added.