Consumer Panel welcomes FSA publication of study on benefits of suitability letters for consumers

29 June

The Financial Services Consumer Panel today welcomed the FSA's publication of an independent study of the benefits of the requirement for firms to send a suitability letter to consumers when firms are recommending an investment product. This letter – which the FSA proposed to retain as a 'report', as a result of MiFID requirements and the FSA's new Conduct of Business Sourcebook – provides consumers with a prompt written record of the recommendation they have been given and the reasons for it.

John Howard, Chairman of the Financial Services Consumer Panel, said:

"We welcome the FSA's publication of research indicating benefits to consumers in getting a clear and concise record of their personal investment decision. Indeed, we believe firms also benefit in having the suitability letter as a record of how and why products are sold. We will continue to press the FSA to ensure that they take a broad range of benefits into account when assessing the impact of certain regulations."

Notes to editors

  1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.

  2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on this website.

  3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.

  4. There are currently twelve members of the Panel as listed below.

    John Howard (Chairman)
    Adam Phillips (Vice Chairman)
    Kay Blair
    Michael Chapman
    Stephen Crampton
    Caroline Gardner

    Jenny Hamilton
    Tony Hetherington
    Nick Lord
    David Metz
    Lindsey Rogerson
    Carol Stewart

 

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