The FSA has made substantial progress in setting a consumer agenda within the new single financial regulatory regime. However, the Financial Services Consumer Panel uses its Annual Report published today to highlight not only the areas of progress, but also where the FSA could do more to consider the consumer in its regulation.

In the Consumer Panel's review of its own activities, three elements of its work are clear:

• Supporting the FSA as it pursues its consumer agenda, particularly in its efforts to improve protection and consumer awareness, and when has been opposed by the industry, for instance over its ‘treating customers fairly' programme and the comparative tables of financial products on the FSA's website.
• Sharpening the consumer focus of the FSA's regulations where the Panel has been successful in influencing FSA policies. This includes issues such as reviewing the rules on advertising promotions; ensuring the review of pensions mis-selling is completed on schedule; and improving company complaint procedures for mortgage endowments.
• Pushing the FSA to do more for consumers as the regulatory system develops and new challenges are presented. The FSA needs to consider carefully how it works to communicate its activities with consumers; how it ensures consumer access to appropriate advice; and how it will fulfil its objective to ensure consumer awareness of their level of protection.

A significant area that the FSA needs to develop is in finding ways to alert consumers to problems in firms and sectors heading for trouble. This is where there needs to be much more of a presumption to tell consumers what is happening. The jury is still out on whether the FSA has learnt all the lessons from Equitable Life, and would respond more quickly in the future, but the Panel points to encouraging signs in the FSA's handling of a number of other intervention issues over the past year.

Colin Brown, Chairman of the Financial Services Consumer Panel said:
"The FSA got its full legal powers six months ago, and it has a huge programme of regulatory reform under way. The Consumer Panel's job is to make sure the interests of the ordinary customer are always at the top of the FSA's agenda. There is still a vast amount to do before consumers have the financial products and services they deserve."

Enquiries
Media: 020 7066 0902
Publications: 020 7066 3298

Notes to editors