FCA to be responsible for consumer credit
The Government has just announced the Financial Services Bill, outlining how the industry will be regulated when the FSA is replaced by two new bodies later this year.
The FCA will take over from the Financial Services Authority once the Financial Services Bill is enacted.
The Financial Services Consumer Panel has welcomed the announcement. Adam Phillips, chair of the Consumer Panel, commented: “The Consumer Panel welcomes the intention to transfer responsibility for consumer credit regulation to the FCA.
“The Panel has long advocated this commonsense proposal which is what most people assume to be the situation now.
“When this happens, this will create a single regulator responsible for delivering effective consumer protection, whether consumers are saving or borrowing money.
“However, we consider it essential that all consumer protection mechanisms under the existing Consumer Credit Act are retained through this transfer.”
Which? chief executive, Peter Vicary-Smith, said: “Which? is delighted the government has listened to our calls for a tough financial regulator that fights on behalf of consumers. This is why we launched our ‘Watchdog not Lapdog’ campaign, as people told us they want a regulator that stands up to industry.
“The transferral of consumer credit to the FCA means it can give greater scrutiny to this market and encourage responsible lending, but the government needs to make sure it has these powers as soon as possible.
“The regulator must be strong, open and proactive, with consumer protection and the promotion of effective competition at the heart of everything it does. The FCA needs to deliver on its promises.”