Consumer Panel publishes annual report for 2008-09

16 July 2009

The Consumer Panel has today published its annual report for 2008-09.  As well as reviewing the past year, the report also looks forward and highlights the following as key issues for the FSA to get right for consumers over the next year.
 

• Outcomes focussed regulation and treating customers fairly – The Panel welcomes the FSA’s commitment to look at the outcomes for consumers rather than relying on what firms tell them. This will be crucial in monitoring whether firms are treating their customers fairly.

• Mortgage regulation – it is vital, in these difficult economic times, that the FSA’s principles are followed and rules obeyed, particularly in relation to mortgage arrears.  We urge the FSA to take strong action against firms that do not treat their customers fairly in this area.

• Making sure banks commit to fair treatment of customers – the FSA’s decision to take over the regulation of day to day bank deposit taking from the voluntary Banking Code in November 2009 is a great opportunity for banks to demonstrate that they treat their customers fairly.

• Eliminating potential for sales bias in investment advice – the FSA’s Retail Distribution Review must result in the step change in the market that consumers deserve. That means the abolition of sales, product and provider bias and the raising of professional standards across the board.

• Transparency – the FSA should give more feedback on firms’ performance so that customers and shareholders can see how firms are behaving.  The FSA’s recent decision on the publication of complaints data about firms is a step in the right direction.

• Making sure firms comply with FSA rules – As well as improving its supervision, we have been pleased with the increase in FSA enforcement action over the past year.  We want the FSA to take stronger action against firms and individuals that don’t comply, so it becomes much more risky for those who try to bend the rules.

Adam Phillips Chairman of the Panel said:

“The financial crisis has created great challenges for the industry, the FSA and consumers.  But in the end, it is consumers, both as paying customers and taxpayers, who are bearing the cost. It is essential to maintain the stability of the financial system, but the FSA also has a statutory objective of consumer protection.  It must rise to the challenge of ensuring that the financial services industry really does treat its customers fairly."

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. What we're doing for consumers explains more about the work the Panel is doing.

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 ten members of the Panel as listed below (for further information on individual members, see Who is on the panel)

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

   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart