The priorities are aimed at the Financial Conduct Authority (FCA), one half of the replacement twin-peak set-up, and have been based on the panel’s review of the FSA’s conduct regulation regime.
Recommendations include; acting more swiftly; making effective use of consumer and market intelligence; utilising the full suite of powers; prioritising risk and effectively using resources; deliver credible deterrence; and embedding foresight in the FCA’s culture.
Adam Phillips, chair of the consumer panel, said: “We hope that these recommendations will assist the FCA in developing a conduct regulation regime which is more effective in protecting consumers.
“We have seen so many financial scandals in recent years where the FSA has been on the back foot. It cannot be right that considerable consumer detriment has built up before the FSA is able or willing to act.”
He added the FCA had to be smarter in using intelligence, faster at problem analysis and bolder in its actions.
The panel’s review concentrated on three areas of FSA activity: PPI replacement products, packaged bank accounts and the impact of incentives or reward strategy.
It found that the FSA had often acted too slowly to stop consumer harm despite significant concerns being raised.
Phillips said: “The FCA has the potential to deliver a revolution in consumer protection. However, this potential will only be realised if it can learn the lessons from the FSA’s experience of conduct regulation.”
