Market wards off FSA

The regulator says it will hold fire on new contract certainty powers but will watch closely as it suspects market of picking easy targets

The joint effort by London market participants to raise standards of contract certainty has been enough to keep regulatory intervention at bay, at least for now. The Financial Services Authority (FSA) announced that the development of its contingency plan should the market fail to progress its own solutions by the end of this year will be put on hold. It added that the plans could be brought back into play at any time.