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FSA outlines FCA super-complaint regime

by Michelle Abrego on Feb 19, 2013 at 10:14

FSA outlines FCA super-complaint regime

The Financial Services Authority(FSA) has outlined how its successor the Financial Conduct Authority will deal with super-complaints to protect consumers from wide spread market failures such as the mis-selling of payment protection insurance (PPI).

A super-complaint is a complaint by a designated consumer body alleging that a feature or a combination of features of the market for financial services in the UK is significantly damaging the interests of consumers.

Through the Financial Services Act, designated consumer bodies, regulated persons and the Financial Ombudsman Service (FOS) will be able to make a super-complaint to the FCA.

The proposals outline evidence needed to support super-complaints and references and how it will be handled by the new regulator.

Evidence to the FCA for a super complaint should include details of the market, the sale or distribution practices that could have an impact on consumers, who they would have an impact on and if possible an extent of damage it could cause.

The FCA will be required to respond to a super-complaint or reference within 90 days setting out how it proposes to deal with the complaint and any possible actions.

It can also carry out wider enquires with a view to testing the evidence like internal research, public requests of information and carry out a review of the relevant regulated firms.

Complainants will be able to decide whether or not to publicise the super complaints but the FCA will be required to publish the response to the super complaint.

7 comments so far. Why not have your say?

l'ifa passeport en provenance de France

Feb 19, 2013 at 12:30

that will be ......pay day loans ,credit cards .....

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Julian Stevens

Feb 19, 2013 at 16:08

How about a super complaint mounted by a designated industry body acting on behalf of regulated persons against the failure of the FSA to observe in any measure the provisions and precepts of the Statutory Code of Practice for Regulators?

Before becoming a member of the TSC, Pat McFadden penned the foreward to that noble but totally ignored document outlining what should constitute fair, decent and cost-conscious regulation. Now, sadly, there seems to be a collective denial that it even exists.

And what have we ever heard from AIFA or APFA on the subject?

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Simon Mansell

Feb 19, 2013 at 16:27

For years thousands of consumers complained to the Financial Ombudsman Service about payment protection insurance (PPI) and bank charges. Some years back I reported a case where five years premiums were taken and added to the mortgage. The FSA failed to regulate the banksand take effective action in the case of PPI and it was the Office of Fair Trading (OFT) that finally took on the wider implications role in the case of bank charges.What we need is a regulator that regulates what needs regulation and leave alone what does not!

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Julian Stevens

Feb 19, 2013 at 16:45

Spot on Simon ~ the problem, of course, being that no body exists to MAKE the regulator listen to anyone but itself which (yep, I'm going to say it again) we so desperately need an Independent regulatory Ovevrsight Committe with the unassailable power to say to the regulator of the day either: This is wrong and you aren't going to do or This needs doing and it needs doing NOW so get on with it and report back to us in 3 months time. And if you don't....

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Simon Mansell

Feb 19, 2013 at 19:58

It seems to me that in the UK today we have armies of regulators regulating a shrinking number of productive profit making businesses. I shudder to think how much of an advisers waking day is put into non productive box ticking regulatory tasks and what makes matter worse is the thought that when the banks imploded on themselves bringing the UK to near meltdown those same regulators were asleep on their watch. Their presence mattered not one jot! In 2008, the year it went bang those same regulators awarded themselves a £20m bonus and the irony of it all was they borrowed from the same banks to fund it!

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Arthur Schopenhauer

Feb 20, 2013 at 08:26

Is anyone listening?

I wish I was either more stupid so this would all go over my head or smarter so I could work out how to change this dysfunctional business

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Simon Mansell

Feb 20, 2013 at 09:19

Arthur: And if thine eye offend thee, pluck it out (Matthew 18:9). By which I mean the solution may well be to blank all this regulatory clap trap brought into our ofices, homes and psyche by the likes of Citywire. My guess is that it has always been as bad but never as reported!

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