Treating Customers Fairly must remain core to FSA regulation says Consumer Panel

12 November

The Financial Services Consumer Panel said it was seriously concerned about today’s announcement that the FSA is to wind up its Treating Customers Fairly initiative early and rely instead on day to day supervision of firms to check that firms were working according to this principle.  For the FSA’s more principles based regulation to work effectively for consumers, the Panel believes that effective implementation of the principle of Treating Customers Fairly is crucial.

Chairman of the Financial Services Consumer Panel, David Lipsey, said:

"The FSA is taking a calculated risk in assuming firms will have embedded the Treating Customers Fairly principle into their operations, as this was not the case when it was last reviewed in March 2008.  Consumer confidence and trust in this industry is vital for its long term survival and this can only be gained if consumers believe they are being treated fairly.  We will take a close interest in how the FSA ensures its supervisors are all trained and adequately resourced to follow up this initiative through day to day supervision in the field.” 

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 our website – www.fs-cp.org.uk.

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 (for further information on individual members, see the Panel's website – www.fs-cp.org.uk)

   Lord Lipsey (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