Financial Conduct Authority should regulate consumer credit - FSCP

clock • 1 min read

The Financial Services Consumer Panel has called for the new Financial Conduct Authority (FCA) to be given full responsibility for the regulation of retail financial services, including consumer credit.

Currently the FSA regulates the notification of an unauthorised overdraft and the grounds on which payments may be bounced but not the overdraft itself, which is regulated by the Office of Fair Trading (OFT).

The FCA will take over from the FSA once the anticipated Financial Services Bill is enacted. The Consumer Panel believes that consumer credit regulation should also be transferred from the OFT to the FCA.

A subsequent review would then examine when it would be appropriate to move to an integrated Financial Services and Markets Act-based regime.

Adam Phillips, chair of the Consumer Panel, commented: "The Panel is calling for a common sense reform that will enhance consumer protection.

"Transferring the Consumer Credit Act powers to the FCA will make retail financial services regulation work in the way most people expect.

"The Government can only deliver its vision of a powerful conduct regulator if the FCA has comprehensive responsibility for the whole retail market whether consumers are saving or borrowing money."

"The creation of the new regulator is a golden opportunity to end the historical anomaly that leaves consumer credit alone outside FSA regulation."

The Treasury and the Department for Business and Skills are shortly due to announce the results of their consultation on how consumer credit should be regulated.

More on Regulation

PFS turmoil continues as interim CEO Don MacIntyre exits

PFS turmoil continues as interim CEO Don MacIntyre exits

Organisation has been at loggerheads with CII

Jenna Brown
clock 05 November 2024 • 2 min read
Implications of the PRA's 2025 life insurance stress test

Implications of the PRA's 2025 life insurance stress test

A regulatory shift

Sheikh Yasir
clock 01 November 2024 • 4 min read
Industry reacts: Autumn Budget 2024

Industry reacts: Autumn Budget 2024

Missed opportunities for health

Cameron Roberts
clock 31 October 2024 • 5 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read