In conjunction with the Financial Ombudsman (FOS) and Office of Fair Trading (OFT), the committee will attempt to identify risks before they become “widespread problems”.

It has published a discussion paper, Consumer Complaints (Emerging Risks and and Mass Claims), which sets out the work the newly created committee would undertake.

The work of the committee would update the ‘wider implications’ process to take pre-emptive action to stop risks spreading.

Currently, the wider implications process is often triggered after a problem has already taken its toll on the industry and consumers. The new committee would seek to rectify this shortcoming.

The Committee will consist of specialists from the FSA, OFT and FOS and will spot emerging risks, with the aim of increasing the ability to respond decisively to market threats.

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Sheila Nicoll, director of conduct policy at the FSA, said: “Complaints handling is a priority area within the FSA’s intensive supervision agenda. The co-ordination committee is a clear indication of the intention, and will, of the authorities to work even more closely together to improve the experience of consumers, and to avoid problems happening in the first place.”

Ray Watson, director of consumer credit at the OFT, added: “Identifying and dealing with problems at an early stage is important for ensuring consumers do not suffer unnecessary harm from financial products.”