Watchdog gets into its stride as consumers champion

The FSA takes on its full powers as the single regulator of financial services in the UK from midnight on 30th November.

Welcoming an open letter from the Consumers Association, she said:

Our radical new approach to regulation will for the first time allow us to identify areas of potential consumer detriment at an early stage and to home in where risks to consumers are greatest.

We have already made a head start on helping consumers get a fair deal by providing useful information on financial products and services via our consumer helpline, website, consumer factsheets and guides, and CD rom. And the comparative tables are already helping consumers to shop around for the best deal.

We have already introduced new rules to improve complaints handling by firms, and to set up the new single Ombudsman and compensation schemes.

And we have already embarked on major reviews of with-profits products; the insurance sector; polarisation; advertising standards for financial services; and point of sale information disclosure. We are also looking at the application of our new powers on unfair contract terms.

In the New Year we will be publishing - for consultation - strategic objectives and priorities for the FSA in our plan and budget for 2002/03. These will demonstrate that we take our new responsibilities to consumers extremely seriously.

We look forward to working with consumer and industry bodies in taking this challenging work programme forward.

Notes for editors

1. The Consumers Association will tomorrow (30 November) be sending an open letter to the FSA to mark its arrival as the single regulator for the UK financial services industry.

2. PHOTOCALL: Howard Davies, Chairman of the FSA, and Allan Asher, Director of Campaigns and Corporate Communications at the Consumers Association, will be exchanging letters at a photo call: Time 8.40am Date Friday, 30 November Place FSA, 25 The North Colonnade, Canary Wharf, London E14 5HS. The content of the letters will be published at the same time.

   If you would like to attend, please contact Vivienne Batten on 020 7066 3218 so that security can be informed. You should aim to be at the FSA's building by 8.30am.

3. The FSA works strategically to increase public understanding of financial products and services:
   • Increasing consumers understanding of their own needs: FSA Financial Planning is a new CD Rom which helps consumers identify their financial goals and priorities, gives guidance on what to consider when choosing products and provides information on their rights. It is available free from the Consumer Helpline on 0845 606 1234.
   • Providing independent, easy-to-understand information: Free FSA factsheets and booklets on personal finance issues such as pensions, mortgages and getting financial advice are available from the FSA Consumer Helpline (0845 606 1234) and Consumer Help on the FSA website at www.fsa.gov.uk/consumer They are also distributed to CABs, libraries and MPs constituency offices.
   • Helping consumers shop around for the best deal: generic information about financial products and services is available on Consumer Help at www.fsa.gov.uk The FSAs Comparative Tables now bring together in one place useful information on financial products, such as ISAs and personal pensions, including stakeholder pensions. The tables help consumers to see what is available at a glance so that they can then draw up a shortlist of products to investigate further.
   • Answering questions: The Consumer Helpline deals with thousands of telephone enquiries. These range from checking whether firms are authorised to conduct business or hold clients money to explaining complaints procedures and providing information on what is and is not regulated by the FSA.
   • Spearheading campaigns: The FSA identifies risks that the changing economic climate poses to consumers and develops appropriate campaigns to raise awareness of issues and provide the information that consumers need to make important decisions.
   • Protecting consumers: FSA rules require firms and financial advisers to be honest, competent and financially sound. Dealing with authorised firms means that consumers benefit from the protection of a single Ombudsman service and single Compensation scheme.
   • Reaching the next generation: The FSA worked closely with the Department for Education and Skills (DfES) to get personal finance on the school curriculum. We are now supporting the Personal Finance and Education Group (pfeg) to ensure that policy is turned into practice and personal finance is taught effectively in schools.

4. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

5. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.