FCA Consults on New Rules to Boost U.K. Consumer Protection

  • In Business
  • 2021-12-07 09:35:14Z
  • By Bloomberg

(Bloomberg) --

Most Read from Bloomberg

  • Sand and Soldiers Mix as Troops Move In to Protect Cancun Tourists

  • The World's Relentless Demand for Chips Turns Deadly in Malaysia

  • Even in the Metaverse, Not All Identities Are Created Equal

  • Automating the War on Noise Pollution

  • The Ugly, Expensive Plan to Bring Green Power to China's Megacities

The U.K. market watchdog plans to raise the standard of care that finance firms should offer consumers, marking its latest effort to improve safeguards after the mini-bond scandal.

The proposals for a new "consumer duty" are designed to push firms to compete in the interests of retail customers, the Financial Conduct Authority said in a statement Tuesday. Firms will be expected to consider the likely outcomes their customers will receive over the full lifecycle of their product offerings -- a goal the FCA said it will back up with "assertive supervision."

"Under the consumer duty, firms and our supervisors would increasingly focus on the outcomes consumers experience," the document said. "Firms would need to assess and evidence the extent to which and how they are acting to deliver good outcomes."

The focus on consumers comes with the FCA under pressure from a U.K. parliamentary committee to overhaul its operations after London Capital & Finance Plc collapsed in a mini-bond scandal that exposed customers to losses on more than $300 million in investments.

Chief Executive Officer Nikhil Rathi has previously signaled that the regulator is shifting to a more proactive way of working, saying in July the FCA will be "even more assertive to ensure consumer protection and market integrity,"

The latest guidance is "set to change the face of the consumer financial services market," said Heather Alleyne, U.K. financial services regulation partner at EY. "The limited range of rules and guidance published today put a significant onus on firms to think now about how they will ensure they have placed consumers at the heart of their individual business models."

The FCA is accepting feedback on the proposals until Feb. 15, and expects to make any new rules by the end of July.

(Adds comment from EY in penultimate paragraph.)

Most Read from Bloomberg Businessweek

  • Return-to-Office Chaos Is the Best Thing to Happen to Consultants Since Y2K

  • The Fall of a Russian Cyberexecutive Who Went Against the Kremlin

  • Paige Bueckers, a College Athlete Who's Cashing In

  • The Meme Stock

  • David Baszucki, Roblox's 'Builderman'

©2021 Bloomberg L.P.


More Related News

London Lodbrok Capital Hedge Fund Posts 32% Gain for 2021
London Lodbrok Capital Hedge Fund Posts 32% Gain for 2021

(Bloomberg) -- Most Read from BloombergEarly Omicron Breakthroughs Show mRNA Vaccines' WeaknessJeremy Grantham Doubles Down on Crash Call, Says Selloff Has...

U.K. Retail Sales Plunge as Omicron Keeps Shoppers at Home
U.K. Retail Sales Plunge as Omicron Keeps Shoppers at Home

(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Most Read from BloombergEarly Omicron...

Netflix, Peloton Bring Pandemic-Stock Era to Shuddering Halt
Netflix, Peloton Bring Pandemic-Stock Era to Shuddering Halt

(Bloomberg) -- The Covid-19 pandemic isn't over yet, but the boom it helped create for stay-at-home stocks appears to be vanishing.Most Read from...

Singapore's First SPACs Off to Timid Start in Rough Trading Week

(Bloomberg) -- A lackluster market debut for the first two blank-check companies to list in Singapore is raising some questions whether the excitement seen...

China Vows
China Vows 'No Mercy' in Battle Against Corruption, Big Tech

(Bloomberg) -- China vowed to curb the influence of technology companies and root out corruption tied to the "disorderly" expansion of capital, a sign that...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business