LONDON (Reuters) – There have been too many scams and scandals in Britain’s financial services market and a fundamental review is needed, the Financial Conduct Authority said on Tuesday.
Consumers have suffered from a string of financial scandals going back decades, from endowment mortgages to pensions and the sale of payment protection insurance, costing banks billions of pounds in compensation and raising questions about the competence of regulators.
The FCA has issued a “call for input to help it decide how existing rules can address such “harms” and identify where other authorities could help, or if the government should consider extra powers for the watchdog.
“The consumer investment market is not working as well as it should,” said Christopher Woolard, the FCA’s interim chief executive.
“There have been too many scams and scandals and too often consumers are offered unsuitable products or advice. As a result, many consumers lack confidence in the investment market.”
Feedback will be used to shape the FCA’s work over the next three years.
(Reporting by Huw Jones, editing by Sinead Cruise)
