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TREASURY PDF DOC http://www.hm-treasury.gov.uk/d/cons...tion170211.pdf
CITYWIRE
As Dan Plant from MSE says ''New financial regulator change name frm CPMA to FCA. Sounds like dull acronyms but dropping 'Consumer Protection' not nice sign''
4.6 The Government’s July 2010 consultation document therefore set out plans for the creation of a new conduct regulator with the working title ‘consumer protection and markets authority’.
In order to reflect more directly its role and focus on conduct of business issues, the Government has decided that the new authority will be named the Financial Conduct Authority (FCA).
In order to reflect more directly its role and focus on conduct of business issues, the Government has decided that the new authority will be named the Financial Conduct Authority (FCA).
Ensuring an appropriate degree of protection for consumers
4.16 Where the first operational objective is concerned with delivering the right outcomes, the second focuses on the role of the regulator in securing an appropriate degree of protection where consumers face actual or potential detriment. The objective is intended to be broad enough to enable the regulator to take action to prevent detriment from occurring where a risk has been identified, as well as to take action once harm has actually been done, including for example by the imposition of redress.
4.17 Nevertheless, as set out below, the Government does not believe that this objective should shift the responsibility for taking decisions from the consumer on to the regulator. The term ‘appropriate’ reflects the fact that different consumers require different degrees of protection, depending on their capability and personal circumstances, the product they are buying, and the channel through which they are buying it. This objective therefore makes clear that the regulator may differentiate its approach according to the consumer in question, with a marked difference
2 ‘Services’ is to be defined broadly to include services provided in the course of carrying on regulated activities (including by persons who are not authorised persons); services provided to issuers in connection with capital raising, services provided by payment services providers; and relevant ancillary services.
3 ‘Consumers’ is to be defined broadly to include persons who use, have used or may use “services” or have relevant rights or interests in relation to those services, and persons who have invested in, or may invest in, securities (for example, those listed on the Official List).
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between the level of protection afforded to a retail customer and the level appropriate for a professional market participan
4.16 Where the first operational objective is concerned with delivering the right outcomes, the second focuses on the role of the regulator in securing an appropriate degree of protection where consumers face actual or potential detriment. The objective is intended to be broad enough to enable the regulator to take action to prevent detriment from occurring where a risk has been identified, as well as to take action once harm has actually been done, including for example by the imposition of redress.
4.17 Nevertheless, as set out below, the Government does not believe that this objective should shift the responsibility for taking decisions from the consumer on to the regulator. The term ‘appropriate’ reflects the fact that different consumers require different degrees of protection, depending on their capability and personal circumstances, the product they are buying, and the channel through which they are buying it. This objective therefore makes clear that the regulator may differentiate its approach according to the consumer in question, with a marked difference
2 ‘Services’ is to be defined broadly to include services provided in the course of carrying on regulated activities (including by persons who are not authorised persons); services provided to issuers in connection with capital raising, services provided by payment services providers; and relevant ancillary services.
3 ‘Consumers’ is to be defined broadly to include persons who use, have used or may use “services” or have relevant rights or interests in relation to those services, and persons who have invested in, or may invest in, securities (for example, those listed on the Official List).
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between the level of protection afforded to a retail customer and the level appropriate for a professional market participan
CITYWIRE
Treasury reveals remit of Financial Conduct Authority
The Financial Conduct Authority (FCA) will be charged with protecting confidence in the UK financial system but will need to consider the impact of regulation on market efficiency and consumer choice, the Treasury has announced.
The Treasury has announced the four objectives of the FCA, which will be one of the replacements for the Financial Services Authority when it is disbanded, in its consultation into the shake-up of financial services regulation in the UK. They are:
The FCA will also be bound by the principle that consumers of financial services are ultimately responsible for their own decisions. ‘The degree and type of regulatory protection afforded to them should be tailored to their needs and expertise. The FCA will take these differences into account in determining what sort of regulatory action to take in each sector, on a case-by-case basis,’ stated the Treasury, which emphasised the role of the Consumer Financial Education Body in empowering to take decision confidently.
The Treasury has announced the four objectives of the FCA, which will be one of the replacements for the Financial Services Authority when it is disbanded, in its consultation into the shake-up of financial services regulation in the UK. They are:
- facilitating efficiency and choice in the market for financial services
- securing an appropriate degree of protection for consumers;
- protecting and enhancing the integrity of the UK financial system
- The FCA must, so far as is compatible with its strategic and operational objectives, discharge its general functions in a way which promotes competition.
The FCA will also be bound by the principle that consumers of financial services are ultimately responsible for their own decisions. ‘The degree and type of regulatory protection afforded to them should be tailored to their needs and expertise. The FCA will take these differences into account in determining what sort of regulatory action to take in each sector, on a case-by-case basis,’ stated the Treasury, which emphasised the role of the Consumer Financial Education Body in empowering to take decision confidently.
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