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‘Put consumer protection at top of priorities’, FSA told

‘Put consumer protection at top of priorities’, FSA told

Wednesday, 17 June 2009 Writes Hazel Cottrell hazel.cottrell@consumerchoices.co.uk
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The Financial Services Authority must put the customer first and provide information on which companies are performing badly, says consumer panel.

An independent panel yesterday urged the Financial Services Authority (FSA) (www.fsa.org.uk) to improve consumer protection from bad practice by financial services firms.

“There must be a clear focus on better outcomes for consumers”

The Financial Services Consumer Panel (FSCP) (www.fs-cp.org.uk) panel, set up by the FSA in 1998 to advise on the interests of consumers, urged both the regulator and the government to improve consumer regulation in light of the financial crisis.

Adam Phillips, acting chairman of the FSCP, said there must be “a clear focus on better outcomes for consumers.”

The panel has advised the FSA to make the following “concrete changes”:

  • Become more transparent, providing information on those companies which are performing well or badly
  • Start regulating all aspects of firms it regulates, including the provision of consumer credit - currently regulated by the Office of Fair Trading
  • Take a tougher stance on enforcement and ensure that customers who lose out due to firms’ behaviour are compensated
  • Increase supervision to safeguard consumers effectively from bad practice
  • Increase the scrutiny of firms’ business models to identify risks to the customer, not just business risks.

    • Chris Eagle, commercial manager at CreditChoices.co.uk, said: “Being able to find out which companies are best serving their customers could revolutionise the way that we choose financial products.

    “Plus, it’s likely that if companies knew that this information would be made public, they would be encouraged to improve their treatment of customers.”

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