Consumer Protection

WHAT IS THE ROLE OF THE FINANCIAL CONDUCT AUTHORITY (FCA)

• An independent organisation with a remit to regulate the actions of providers of financial services

• An organisation appointed by the government to represent the interests of the consumer in disputes with financial service providers.

• An organisation in the UK that will pay compensation to a consumer of financial services if the service provider is unable to.

• Government organisation that was established to regulate all markets, including financial markets

WHAT IS THE ROLE OF FINANCIAL OMBUDSMEN SERVICE (FOS)

• ·        Government organisation that was established to regulate all markets, including financial markets

• ·        An organisation in the UK that will pay compensation to a consumer of financial services if the service provider is unable to.

• An organisation appointed by the government to represent the interests of the consumer in disputes with financial service providers.

• An independent organisation with a remit to regulate the actions of providers of financial services

WHAT IS THE ROLE OF FINANCIAL SERVICES COMPENSATION SCHEME (FSCS)

• ·        Government organisation that was established to regulate all markets, including financial markets

• ·        An organisation appointed by the government to represent the interests of the consumer in disputes with financial service providers.

• An independent organisation with a remit to regulate the actions of providers of financial services

• ·        An organisation in the UK that will pay compensation to a consumer of financial services if the service provider is unable to.

WHAT IS THE ROLE OF OFFICE OF FAIR TRADING (OFT)

• ·        An organisation in the UK that will pay compensation to a consumer of financial services if the service provider is unable to.

• ·        Government organisation that was established to regulate all markets, including financial markets

• An independent organisation with a remit to regulate the actions of providers of financial services

• ·        An organisation appointed by the government to represent the interests of the consumer in disputes with financial service providers.

FEATURE OF FINANCIAL CONDUCT AUTHORITY (FCA)

• ·        OFT’s aim was to encourage fair practices and healthy competition between financial institutions

• Funded by membership fees charged to financial service providers

• ·        It is funded by compulsory fees charged to all regulated financial institutions plus additional fees when actions are taken against an institution

• The FSCS e.g protects all savers in banks and building societies up to £5,000 i.e if the financial institution goes bankrupt the savings will be refunded by the FSCS

WHAT IS A FEATURE OF FINANCIAL OMBUDSMEN SERVICE (FOS)

• ·        It is funded by compulsory fees charged to all regulated financial institutions plus additional fees when actions are taken against an institution

• Funded by membership fees charged to financial service providers

• Aim was to encourage fair practices and healthy competition between financial institutions

• The FSCS e.g protects all savers in banks and building societies up to £5,000 i.e if the financial institution goes bankrupt the savings will be refunded by the FSCS

WHAT IS A FEATURE OF FINANCIAL SERVICES COMPENSATION SCHEME (FSCS)

• ·        It is funded by compulsory fees charged to all regulated financial institutions plus additional fees when actions are taken against an institution

• Funded by membership fees charged to financial service providers

• ·        OFT’s aim was to encourage fair practices and healthy competition between financial institutions

• Protects all savers in banks and building societies up to £5,000 i.e if the financial institution goes bankrupt the savings will be refunded by the agency

WHAT IS A FEATURE OF OFFICE OF FAIR TRADING (OFT)

• Funded by membership fees charged to financial service providers

• Protects all savers in banks and building societies up to £5,000 i.e if the financial institution goes bankrupt the savings will be refunded by the AGENCY

• Aim was to encourage fair practices and healthy competition between financial institutions

• ·        It is funded by compulsory fees charged to all regulated financial institutions plus additional fees when actions are taken against an institution

WHAT IS CONSUMER CREDIT LEGISLATION

• Laws passed by the UK Government to protect contracts

• Laws passed by the UK Government to prevent discrimination

• Laws passed by the UK Government to protect employees

• ·        These laws passed by the UK Government to enforce the regulation of any firm offering credit to consumers

WHAT 3 AREAS DOES THE FINANCIAL CONDUCT AUTHORITY (FCA) FOCUS ON

• 1.     Regulation – regulating all financial service providers that trade

  2.    Verification - that all procedures and practices are in the interest of the consumer

  3.     Enforcement – using powers to ensure standards are maintained

• 1.     Authorisation – permitting financial service providers to trade

  2.     Supervision – ensuring procedures and practices are in the interest of the consumer

  3.     Enforcement – using powers to ensure standards are maintained