The Financial Conduct Authority (FCA) will likely "go further" than the Financial Services Authority (FSA) in challenging providers on their products' target markets and charges.
A document outlining the FCA's approach to regulation revealed the body would "challenge providers" on the value-for-money of their products and the charging structures underpinning them.
"It is likely we will go further than the FSA has previously done," the document reads.
The development relates to a key power set to be granted to the FCA under the Financial Services Bill: product intervention.
It will allow the FCA to "intervene early, to pre-empt and prevent widespread harm from happening to consumers from happening in the first place, rather than clear up after the event".
It said, if necessary, it would intervene directly, for example by restricting the use of specified product features or the promotion of particular product types to all or some consumers.
It promised it would consult on plans to ban or restrict any products, except in circumstances where there was a need for prompt intervention, in which case it would intervene without consultation but any resulting ban would last no longer than 12 months.
One of the key areas of concern to the FCA is that, previously, products designed for a specific target market were widely sold out of it.
The FCA said it is mindful its new powers do not restrict competition or product innovation.
The Financial Services Bill is currently under scrutiny in the House of Lords.
