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The Financial Services Authority (FSA) has not used mystery shoppers for at least 18 months, despite a promise from Hector Sants that the regulator would make more use of the tactic.
A freedom of informaion request submitted by the BBC found no mystery shopping exercises had been carried out since March 2010.
In 2010, FSA chief executive Sants, said he would step up mystery shopping exercises.
Consumer groups said they found the news "surprising".
"It is a little surprising that the FSA hasn't placed more of an emphasis on mystery shopping, which can be a useful tool in identifying consumer detriment," Sarah Brooks, director of financial services at Consumer Focus, told the BBC.
"We accept that mystery shopping may not provide the hard evidence needed for enforcement action. However, it can act like a canary in a mineshaft - an indicator of problems."
An FSA spokesperson said: "Mystery shopping is just one way the FSA can spot poor practice in the market place. It remains a tactic that we will use in the right circumstances."
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Pot. Kettle.
So, one completely unaccountable corporatist quango criticizes another completely unaccountable corporatist quango? It's a mad world isn't it? The BBC is the monopoly broadcaster funded by taxation (on the ownership of a telly for Heaven's sake) and therefore all tax paid by its staff is just a rebate to us in wealth creating private business and the Failed FSA is a central planning monopoly bureaucracy funded by trading taxes on wealth creating private business. Jusy who are these two sets of capricious functionaries trying to kid? You really couldn't make it up...
Posted by: Steven Farrall
FSA
I would have thought they had too much on their plate, with all the new roadshows and upcoming RDR & MMR. I for one am glad not to have been mystery shopped as it means doing a fair amount of unpaid work. If it goes along the whole factfind, research and advice route, I don't suppose the FSA would agree to pay us by the hour if we do a good job. It would be an unwinnable situation.
Posted by: MarkG
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No surprise there then
Surely no one will be surprised with this finding - the FSA, especially since the credit crunch don't need to bother with mystery shopping as they have turned themselves into a state police organisation for the financial industry without any genuine oversight or control by anyone else - the result is they will simply hound any one they choose on any point they choose and declare any concerns in the public domain without any fears of anyone being able to challenge them. Anyone in the industry stupid enough to do that will just be hounded even more. In my view, and a silent majority in my experience, is that they are truely awful in their role and now have entered the mentality that everyone in the industry is offending in someway so will pick on everyone or anyone they choose - except the larger organisations that have most affect on the industry because they are imcompetent to do so. Ironically from my perspective I truly believe regulation is essential - just that the FSA is not the organisation to do it - oh yes I am not an IFA or directly affected by the FSA so have no self-interest or particular drum to beat against them - and thank goodness for that!!!
Posted by: John