You are here: Home - Investing -

FSA successor must ‘act more swiftly’, says consumer panel

Written by:
The incoming Financial Conduct Authority (FCA) must "act more swiftly" than its predecessor the Financial Services Authority (FSA), and ensure it utilises the full powers at its disposal, a body representing consumer interests has recommended.
FSA successor must ‘act more swiftly’, says consumer panel

The suggestions are part of six recommendations put forward by the Financial Services Consumer Panel (FSCP).

The FCA will be one half of the replacement twin-peak set-up – the other organisation being the Prudential Regulation Authority.

The FCA’s recommendations are based on its review of the FSA’s conduct regulation regime.

Recommendations include; act more swiftly; making effective use of consumer and market intelligence and utilising the full suite of powers.

They also suggest the FCA prioritises risk and effectively uses resources; delivers a credible deterrence; and embeds foresight in the FCA’s culture.

Adam Phillips, chair of the FSCP, said: “We hope that these recommendations will assist the FCA in developing a conduct regulation regime which is more effective in protecting consumers.

“We have seen so many financial scandals in recent years where the FSA has been on the back foot. It cannot be right that considerable consumer detriment has built up before the FSA is able or willing to act.”

He added the FCA had to be smarter in using intelligence, solve problems faster and be bolder in its actions.

The panel’s review concentrated on three areas of FSA activity: PPI replacement products, packaged bank accounts and the impact of incentives or reward strategy.

It found that the FSA had often acted too slowly to stop consumer harm despite significant concerns being raised.

Phillips said: “The FCA has the potential to deliver a revolution in consumer protection. However, this potential will only be realised if it can learn the lessons from the FSA’s experience of conduct regulation.”

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Mutual mortgage approvals rocket 45% in H1 2012

Mortgage approvals by building societies and other mutuals grew by 45% in the first six months of the year, according...