Regulators to set up consumer protection committee
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The Financial Services Authority, the Office of Fair Trading and the Financial Ombudsman Service want to create a consumer protection committee to identify consumer risks before the risks turn into widespread problems.
The committee would also work to determine fast and effective ways of dealing with these risks.
The FSA has today published a discussion paper, Consumer Complaints (Emerging Risks and and Mass Claims), that sets out the work the newly created committee would undertake.
The committee would draw together specialists from the three regulatory bodies to spot emerging risks, with the aim of increasing the regulators’ and FOS’ ability to respond decisively to market threats.
Sheila Nicoll, director of conduct policy at the FSA, says: “Complaints handling is a priority area within the FSA’s intensive supervision agenda.
“The co-ordination committee is a clear indication of the intention and will of the authorities to work even more closely together to improve the experience of consumers and to avoid problems happening in the first place.”
Ray Watson, director of consumer credit at the OFT, says: “Identifying and dealing with problems at an early stage is important for ensuring consumers do not suffer unnecessary harm from financial products.
“We believe that the proposals for a co-ordination committee and the focus on risk will improve our ability to deal with problems before they become widespread.”
David Thomas, interim chief ombudsman, agrees. He says: “The ombudsman service is committed to preventing complaints, as well as resolving them.
“It’s key for regulators and the ombudsman service to continue working closely together to identify potential problems as soon as they emerge, to ensure that consumers are treated fairly and can have confidence in financial services.”
Readers' comments (1)
Anonymous | 11 Mar 2010 4:55 pm
Another committee to identify risks that are blindingly obvious to all practitioners in the industry except the regulators and the ombudsman!!
Why has it taken five and a half years since mortgage regulation for them to start thinking about this?
Point one on the agenda should be, 'how many of the risks could and should have been identified years ago if the FSA actually knew what it was doing?'
Point two should be 'how much damage has the FSA done to the industry by driving out thousands of advisers who can no longer afford to stay in the job and/or do not see a future in an industry where the regulator keeps discrediting products and giving more ammunition to the 'ambulance chasers'. The FSA have discredited self-certs, so that will be the next target for claims management companies...
Since when has the ombudsman been committed to preventing complaints? And how do they achieve this? There is precious little evidence of any prevention so far!
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