FSA to consult Consumer Panel before confirmation of industry guidance

4 September

The Consumer Panel welcomed the FSA's announcement today of a new framework for recognising industry guidance under Principles-Based Regulation. This includes a commitment to notify the Consumer Panel of all guidance referred for approval to the FSA, and to seek its views on those considered to have a significant impact on consumers before issuing any confirmation.

The Panel had been concerned that although the FSA's rules have to be subject to public consultation, there is not the same need to do so on industry guidance. We are therefore pleased that the FSA has undertaken to submit guidance to the Consumer Panel for its opinion before confirmation. The FSA has already started to do this, by involving the Panel in the recent industry guidance on the interpretation of MIFID by MIFID Connect.

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

"We have supported the FSA's move to principles based regulation, but were concerned that new guidance would be developed by industry without proper consideration of the consumer implications of any changes. We are pleased that the FSA has recognised our concerns and look forward to helping industry to produce guidance which takes consumers into account."

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