Consumers must be at the heart of the new regulatory structure

First published: Last updated: 23/06/2011

23 June 2011

Financial Services Consumer Panel Chair Adam Phillips has called for a stronger voice for consumers in the new regulatory structure at the FSA’s Annual Meeting.

The Consumer Panel argues that the new regulatory structure as envisaged in the Government’s White Paper does not strike a reasonable balance between prudential regulation and the consumer interest. There is a danger that the present reforms focus too much on the recent crisis in the banking industry. Failing to learn all the lessons from the FSA’s experience of regulation will mean that we are doomed to repeat them.

 

Adam Phillips, Chair of the Consumer Panel, commented:

“We are pleased with the way that the FSA’s regulatory approach has changed in that last two years and the new ‘twin peaks’ structure should bring more positive developments for consumers. But there is a danger that consumers could be cut out of some of the key decision making processes which will influence the cost and fairness of financial services in the future.

The Panel believes that it is essential that there is greater consumer input into the Bank of England and the Prudential Regulation Authority than is proposed in the White Paper. Any reform to UK financial services regulation should place consumers at the heart of the process. It is consumers who have suffered the most in recent years from poorly performing financial institutions.”

 

 

Notes to editors

  1. Adam Phillip’s speech can be found on the Consumer Panel website.

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  3. The Consumer Panel Annual Report is available on our website.

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  5. The Consumer Panel is a statutory body under the Financial Services and Markets Act 2000 and was initially established by the Financial Services Authority in December 1998. The Panel advises the FSA Board on the interests and concerns of consumers and reports on the FSA’s performance in meeting its objectives.

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  7. 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.