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The Financial Services Authority (FSA) has been granted a new power to deliver prompt and effective redress for consumers.
The new FSA power was activated on the 12th of October, along with other changes, by a Commencement Order laid in Parliament by HM Treasury, which was part of April’s Financial Services Act 2010. The new power would be used in instances when there is evidence of widespread or regular failings that have caused consumer detriment. The FSA would need to undertake cost-benefit analysis and consult each time it uses the new rule making power.
The Commencement Order included a number of other changes:
"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.”
For further information read the guidance note on operation of Consumer Redress Scheme, at the Financial Services Authority website.
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The new FSA power was activated on the 12th of October, along with other changes, by a Commencement Order laid in Parliament by HM Treasury, which was part of April’s Financial Services Act 2010. The new power would be used in instances when there is evidence of widespread or regular failings that have caused consumer detriment. The FSA would need to undertake cost-benefit analysis and consult each time it uses the new rule making power.
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; and
- The power to publish decision notices as well as final notices, allowing FSA to publicise enforcement actions earlier.
"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.”
For further information read the guidance note on operation of Consumer Redress Scheme, at the Financial Services Authority website.
More...
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