The Financial Services Authority says it is to launch a risk assessment tool to protect consumers from future problems.
The service, which will begin later this year, is designed to act as an early warning system.
The regulatory body will use the risk service for internal purposes to help officials "assess the risk to consumers of different products being launched or marketed by firms".
While the FSA points out the purpose of this service is not to stifle product innovation, it does highlight the need for such a system.
It feels it will particularly ensure there are "robust controls" over the sale and distribution of products being launched into the market or which the FSA sees as presenting "particular dangers to consumers".
The tool will focus on three main areas: the characteristics of the products, the controls in place in terms of marketing, and the target audience of the product.
The FSA explained that the tool would centre on products that are deemed high-risk to consumers.
It said it would also be used to assess products "where the level of individual loss may not be significant but where there may be a cumulative impact across a mass market".
FSA to launch risk assessment tool
Financial Services
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