27 March 2014
The Consumer Panel welcomes the announcement by the Financial Conduct Authority (FCA) of the fine it has imposed on Santander UK for serious failings in the way the bank offered financial advice to customers.
The Panel has called in the past for the FCA to make more use of mystery shopping and we were pleased to see that this decision reflects its willingness to use this particular regulatory tool.
We have had concerns about the quality of investment advice offered by banks for a number of years, so we welcome the regulator’s decision to take robust action.
Sue Lewis, Consumer Panel Chair, said:
“"The Santander fine is a good example of the FCA putting consumers' interests first, and taking a more robust approach to poor treatment of customers than its predecessor, the FSA, ever did. The only question is, when will the industry get the message that ripping off customers just doesn't pay any more?"
“Enforcement action such as this helps to deliver the right messages to the sector about the consequences of unprofessional behaviour.”
Notes to editors
- The Consumer Panel is a statutory body under the Financial Services Act 2012. It was initially established by the Financial Servicse Authority in December 1998. The panel advises the FCA on the interests and concerns of consumers.
- The Panel's membership is drawn from a broad range of backgrounds with expertise including market research, law, financial services industry, financial inclusion, European Regulation, financial regulation, consumer advice, campaigning, communications, compliance and later-life issues.
- The emphasis of the Panel's work is on activities that are regulated by the FCA, although it may also look at the impact on consumers of activities outside but related to the FCA's remit. More information about the Panel's work is available here.