IMA warns about mis-selling private offshore banking products

The Investment Management Association (IMA) has warned about the mis-selling of private offshore banking products.

It spoke in response to the Financial Services Authority's Discussion Paper on product intervention, saying while it welcomes the measures proposed in the document, there are still some gaps to consider.

"The proposals in the paper would not prevent mis-selling of products based offshore," said a spokesperson for the IMA.

It went on to point out that it does not take into account European developments and the competition between UK firms to those on the continent.

Director of authorised funds and tax at the IMA Julie Patterson said: "When introducing new measures the FSA ought to take into account what is already happening to avoid instances of market failure occurring."

She went on to say a balance needs to be struck between "appropriate action to tackle market failure and hindering competition and innovation".

Last month, the IMA asked the Financial Conduct Authority to encourage global competitiveness, which it stated would boost the UK's economy.

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