According to a new paper on product intervention authored by the city watchdogs, the new regulator, The Financial Conduct Authority (FCA), assigned to regulate the conduct in the retail sector through “early and proactive intervention” will be given the power to eradicate or ban “potentially detrimental” or “suspicious investment products” before making in to the market.

The paper’s objective is to implement a “hands-on” method in ensuring these financial products meet their specific standards even while on development. UK regulators will remove “inherently toxic” products off the market “in order to protect consumers.”

Claims for mis sold payment protection insurance (PPI) will be carefully monitored to prevent a repeat of the mis selling scam.

The retail distribution review, which is currently under thorough examination, is backed up by consumer rights group trusting it will improve consumer protection greatly.

Still, some financial players disagree, arguing that the “mis-selling”, not the product, should be focused on, and that most investment products fit some consumers. Others fear that the review will implement stringent standards on investment advisers, as it will on how products are sold, thus excluding the need for aggressive intervention.

Investment management division worries that the regulators will potentially eliminate financial advice and push them to take on the responsibility of deciding the appropriateness of the financial products offered largely by third parties.

Mr. Gleeson of Clifford Chance retorts the possible occurrence will be the inevitable consequence; as the power to refuse to agree to financial products offered by a financial institution was a “necessary consequence” of the removal of “certain levels of investment advice.”

UK regulators are fully advancing their system to fortify their “ability to supervise and enforce early action in order to “benefit consumers substantially” and to help prevent banking institutions from mis-selling PPI and similar products again.