The Financial Services Authority (FSA) today announced that Lord Lipsey has resigned as chairman of the Financial Services Consumer Panel.
Adair Turner, FSA chairman, said:
“I have accepted the resignation of David Lipsey as chairman of the Financial Services Consumer Panel.
“We continue to welcome the advice and challenge to our policies and proposals that the Consumer Panel provides and regard it as a valuable statutory accountability mechanism, balanced by the parallel Practitioner Panels. I would like to thank David for his work in pursuit of the Panel's objectives.
“In addition to the traditional activities of the Consumer Panel, David has proposed a much wider remit, with a role across a wide lobbying agenda supported by greatly increased resources. The members of the Consumer Panel did not, however, share David's belief that this changed and wider role was appropriate, nor did the FSA believe that the change from the existing role was required.
“We will continue to support fully the Consumer Panel in providing independent advice from the consumer point of view on the FSA's policies as they are developed, and believe that is where the Panel has a very important role to play.
“I am pleased to confirm that vice chair Adam Phillips has kindly agreed to act as chairman of the Consumer Panel on an interim basis until a decision on a permanent replacement is reached.”
Lord Lipsey’s resignation takes effect from Tuesday 2 December. The process to appoint a new chairman is underway and the results of that process will be announced in due course.
A copy of Lord Lipsey’s resignation letter is attached below.
Background
- David Lipsey joined the Financial Services Consumer Panel as chairman from 2 June 2008.
- The Financial Services Consumer Panel is established according to the Financial Services and Markets Act 2000, to represent the interests of consumers and is independent of the FSA in its views. The FSA Board appoints Panel members, with the Treasury’s approval in the case of the Chairman.
- The current members of the Consumer Panel are: Adam Phillips (vice chairman); Kay Blair; Michael Chapman; Stephen Crampton; Caroline Gardner; Jenny Hamilton; Tony Hetherington; Nick Lord; David Metz; Lindsey Rogerson; Carol Stewart.
Lord Lipsey’s letter of resignation:
I write to resign as Chair of the Financial Services Consumer Panel, with effect from 2nd December 2008.
Over my six months in office, I have sought to promote a significant change of role for the Panel to tackle consumer financial services issues in a broader sense. This has become more urgent in my view as a result of the blow to consumer confidence resulting from the financial crisis.
This approach has not won the support of the FSA or of the panel as a whole. Additionally, the increased resources required to sustain that altered role will not be made available. In those circumstances, the panel requires a change of leadership.
The Panel has a useful job to do advising the FSA – the role which it has played since its inception. I wish it well in performing it under Adam Phillips whom I understand has agreed to take over from me as acting chairman.
David Lipsey.
