FSA gains consumer redress and publication powers

[marshallka]

http://citywire.co.uk/wealth-manager...powers/a439181

FSA gains collective redress powers

The Financial Services Authority (FSA) has been granted the power to force businesses to establish collective redress schemes to compensate consumers and publicise enforcement actions earlier.

The power was created by the Financial Services Act 2010 and activated today along with others changes to the regulator. The FSA will use collective redress schemes where there is evidence of widespread failings following large numbers of claims made to the Financial Ombudsman Service over issues like payment protection insurance.

This is an important new tool for the FSA, which increases our ability to get redress for consumers when firms have not followed our rules,’ said Sally Dewar (pictured), managing director of risk at the FSA. ‘The power would obviously be used proportionately. It is not a substitute for working with industry where there is the potential to bring an issue to a fair and speedy conclusion.’ The FSA has also acquired the power to publish decision notices ahead of final notices, which means that it can publicise enforcement actions rather than waiting for the Financial Services and Markets Tribunal to process appeals.

[marshallka]

Re: Lloyds puts PPI claims on hold in defiance of regulator

http://citywire.co.uk/wealth-manager...powers/a439181

FSA gains collective redress powers

The Financial Services Authority (FSA) has been granted the power to force businesses to establish collective redress schemes to compensate consumers and publicise enforcement actions earlier.

The power was created by the Financial Services Act 2010 and activated today along with others changes to the regulator. The FSA will use collective redress schemes where there is evidence of widespread failings following large numbers of claims made to the Financial Ombudsman Service over issues like payment protection insurance.

This is an important new tool for the FSA, which increases our ability to get redress for consumers when firms have not followed our rules,’ said Sally Dewar (pictured), managing director of risk at the FSA. ‘The power would obviously be used proportionately. It is not a substitute for working with industry where there is the potential to bring an issue to a fair and speedy conclusion.’ The FSA has also acquired the power to publish decision notices ahead of final notices, which means that it can publicise enforcement actions rather than waiting for the Financial Services and Markets Tribunal to process appeals.

[Amethyst]

Re: Lloyds puts PPI claims on hold in defiance of regulator

Amethyst, what do you think of the Collective Redress that came into force today... (FSA granted powers for collective redress!!)

Shame they're to be disbanded (but then if they are why continue with this plan so really who knows whats going on there, we'll find out on 20th? I think when they lay out plans for the regulators and consumer bodies...not really sure whats happening there tbh.

I havent read the docs yet (or seen any other news on it, and the FSA sites down) that you put up earlier, collective redress was a big issue back in April time I think, with the Financial Services Bill which was dropped. I didnt know it was back on the agenda as it were, but if the FSA have been given more powers (and they actually use them) it can only be a good thing for us, but more for the banks to fight against (to our detriment).

I like the mention of publicising actions taken BEFORE waiting for the outcome of stalling appeals - I guess if appeals do succeed it could end up costing the FSA some sort of compensation or an apology but thats small fry compared to if publicity saves consumers being conned by companies while they wait for the official appeal outcomes ?

Will read, and think about it more in morning, been a busy day xx

[Amethyst]

Re: FSA gains consumer redress and publication powers

information on this

http://www.fsa.gov.uk/pubs/guidance/guidance10.pdf - Guidance notes

Financial Services Act 2010 (2010 c 28)
- the FSA 2010 amendments to 404 FMSA

Financial Services Act 2010 (Commencement No 1 and Transitional Provision) Order 2010
http://www.legislation.gov.uk/uksi/2...0102480_en.pdf
Brings into force the following provisions of the Financial Services Act 2010 on 12 October 2010—


—s 2(2)–(4) which removes public awareness from the objectives of the Financial Services Authority and requires the FSA to take into account the desirability of improving public knowledge of financial matters;


—s 13 which widens the categories of supervisory notices given by the FSA that may be published;


—s 14 which enables the FSA to create a “consumer redress scheme” relating to losses from a widespread or regular failure by financial services firms;


—s 17 which extends the scope of the Financial Services Compensation Scheme manager’s powers;


—s 24(1), (2), Sch 2, paras 21, 23, 24(3), 33(2) which contain consequential amendments relating to the firms or consumers that may be subject to a consumer redress scheme.


Brings into force the Financial Services Act 2010 Sch 1 on 1 April 2011 in so far as it relates to the Financial Services and Markets Act 2000, Sch 1A, paras 13, 15 and 16. Permits the Office of Fair Trading to impose a levy on consumer credit licensees or applicants to meet a proportion of the consumer financial education body’s costs.

[paulb2905]

Re: FSA gains consumer redress and publication powers

http://www.fsa.gov.uk/pages/Library/...SA/PN/155/2010

12 October 2010
The Financial Services Authority (FSA) has today been granted a new power to deliver prompt and effective redress for consumers.
The new power was part of April’s Financial Services Act 2010, and has been activated today, along with other changes, by a Commencement Order laid in Parliament by HM Treasury.
Sally Dewar, the FSA’s managing director of risk, said:
"This is an important new tool for the FSA, which increases our ability to get redress for consumers when firms have not followed our rules.
“The power would obviously be used proportionately. It is not a substitute for working with industry where there is the potential to bring an issue to a fair and speedy conclusion.
“The FSA will, however, seek to use this power where necessary to ensure consumers are fairly treated.”
The new power would be used in instances when there is evidence of widespread or regular failings that have caused consumer detriment. It is a rule making power, so the FSA must undertake cost-benefit analysis and consult each time it wants to establish a redress scheme.
The Commencement Order included a number of other changes:

• Removal of the FSA’s public awareness objective;
• Introduction of a requirement to have regard to the information provided by the Consumer Finance and Education Body in pursuit of its consumer protection objective.
• The power to publish decision notices as well as final notices. This means that the FSA can publicise enforcement actions earlier, rather than only at the stage of a final notice after a long delay where a person has appealed to the Tribunal.

Notes to editors

1. The Commencement Order can be found on the House of Commons website.
2. The Guidance note on operation of Consumer Redress Scheme
3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; securing the appropriate degree of protection for consumers; fighting financial crime; and contributing to the protection and enhancement of the stability of the UK financial system.