FSA assaults consumer rights

19 December

Why is the Financial Services Authority (FSA) focusing on consumer responsibility at a time when large sections of the industry are not giving consumers a fair deal? According to the Financial Services Consumer Panel (FSCP), this is not the time for the FSA to be debating responsibilities for consumers.  The Panel is questioning why the FSA is today publishing a Discussion Paper – FSA DP08/5 “Consumer Responsibility” – when consumers have little confidence in the financial services market and even less enthusiasm to engage with it. 

Adam Phillips, the FSCP’s  Acting Chairman said:

“Clearly, the industry has been putting pressure on the FSA to increase consumer obligations.  While we are not arguing with the need for consumers to answer questions honestly and read key information, the FSA document provides an opportunity for the industry to attack consumers’ rights, when it is the industry itself which needs to get its house in order and take responsibility for its actions.  Over the past few months we’ve seen consumer confidence fall to unprecedented low levels.  It’s also a time when many firms have been exposed as not giving consumers a fair deal, from the selling of Personal Protection Insurance (PPI), to pension transfer advice and dealing with mortgage arrears.   We have told the FSA that this is not the time to be discussing consumer responsibility, and we will continue to pursue this line vigorously with the FSA over the coming months.“

 

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 eleven members of the Panel as listed below. Further information on individual members, see the Panel's website – www.fs-cp.org.uk)

   Adam Phillips (Acting Chairman)
   Kay Blair
   Michael Chapman
   Stephen Crampton
   Caroline Gardner
   Jenny Hamilton

   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart