'Innovation' not a dirty word, Pru's Thiam tells FSA

Prudential CEO Tidjane Thiam today told the FSA the UK will not benefit from a new regulator which is overly-prescriptive and stunts financial services.

At an event in London on the philosophy of the Financial Conduct Authority (FCA) - one of the organisations set to replace the FSA - Thiam said he was generally "very encouraged" by its planned approach, which will be to intervene earlier on both the product and sales sides where there is a threat to consumers.

However, the head of multi-national business warned a panel of senior FSA staff to tread carefully on plans to increase intervention around the design of products and their availability to consumers.

"Firms in our sector want to be allowed to design products in a flexible and innovative way - innovation, for some, become a dirty word," he said.

"This nation will not benefit from a financial services industry which is stunted.

"It is incumbent on all of us - consumer groups, regulators, firms - to work harder to ensure consumer regulation works effectively.

"Our number one priority is a degree of clarity, certainty and predictability from regulation."

The FSA has previously discussed plans for its successor organisations to intervene earlier in the product chain.

It is considering rules related to price capping and preventing the use of non-advised channels for certain products.