Regulator accused of complacency

The Financial Services Authority (FSA) has been accused of complacency in its dealings with building societies. A former FSA worker told Lib-Dem spokesman Vince Cable that poorly qualified FSA officials, who had no background in the industry and didn’t understand its ‘community roots or limitation’, allowed building societies to expand into ‘risky areas’ and more societies could be at risk in the wake of the collapse of the Dunfermline building society. Mr Cable has asked the FSA chairman to investigate.