Integrity's Stamp clashes with critics in court

Margaret Cole, the FSA's director of enforcement and financial crime, said at the time: 'Geared traded endowment policies are complex products with significant risks attached to them.

'Integrity should have made these risks clear to investors, but it did not; neither did it ensure that the promotional material given to IFAs selling its product described the risks sufficiently.'

I didn't go anywhere near these products but the comment above makes me wonder.

Did anyone with a compliance background or acting as a regulator comment on the promotional literature was sent out to IFAs?

Before the company had problems!

Borrowing to invest is a risky practice for sophisticated investors.

Why was this not picked up sooner by the FSA?

But most financial advisers willingly arrange large borrowings for clients to invest in illiquid assets that take months to buy or sell.

Sorry FSA but we have no effective regulators in the UK.

We have a hit squad who clear up the mess after the event - regulating with hindsight like an auditor- who get rewarded handsomely for this sorry state of affairs. This failure despite FSA draconian powers and their ability to get paid anything they so desire.

Todays Tip for the FSA - Try enforcement of regulation BEFORE the event and save the UK consumer (and IFAs) some money. NOT after.