Tuesday, 18 December 2012 10:34
Consumer panel's expectations for Financial Conduct Authority
The Financial Services Consumer Panel has said it expects the Financial Conduct Authority to deliver real change for consumers next year.
It hopes the implementation of the FCA will mean fairer treatment for consumers and tougher conduct regulation for firms. This should prevent any recurrence of mis-selling debacles such as PPI.
The panel is expecting the FCA:
• Effective prioritisation by the FCA so that the new regulator is not overstretched and can focus on key emerging risks and the root causes of consumer detriment;
• Higher penalties to remove firms' incentive to engage in practices damaging to consumers and to act as a clear deterrent to firms who may decide to copy them;
• A renewed and meaningful focus on Treating Customers Fairly;
• More rigorous supervision of the mortgage sector to prevent lenders taking advantage of 'mortgage prisoners';
• A commitment to making sure everyone can get access to the financial services they need; and
• Vigorous deployment of analytical resources, rule-making and enforcement powers to promote effective competition which delivers real value to consumers.
Adam Phillips, chair of the consumer panel, said: "It's not often that a regulator has the opportunity to refresh and refocus its activities
"We have great expectations of the new Financial Conduct Authority. It has the power to make a radical difference, it must be careful not to spread itself too thinly.
"Strong rhetoric must be matched by strong action and the FCA must be clear about its priorities to ensure that it has sufficient resources at the appropriate level with the necessary skills and expertise to deliver what it has promised."
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