The European Union is also planning to toughen up consumer
protections to deepen its capital market after the departure of
Britain.
(Reporting by Huw Jones; Editing by Sharon Singleton)
By Huw Jones
LONDON, May 10 (Reuters) - Britain's financial watchdog
said on Wednesday it will act quickly to punish serious breaches
of tough new consumer protection rules that come into force at
the end of July.
The Consumer Duty legally requires firms regulated by the
Financial Conduct Authority (FCA) to put the interests of
customers first in a bid to draw a line under decades of
mis-selling scandals.
"We will prioritise the most serious breaches and act
swiftly and assertively where we find evidence of harm or risk
of harm to consumers," Sheldon Mills, FCA executive director of
consumers and competition, said in a speech.
"In some cases, firms can expect us to take robust action,
such as interventions or investigations, along with possible
disciplinary sanctions," Mills said.
The rules seek to ensure that people who use financial
services receive information they can understand, and products
and services that are suited to their needs and offer fair
value, backed by responsive after-sales customer support.
The rules mark a step change in consumer protections and
have faced pushback and calls for delay from the financial
sector.
"If applied correctly by firms, the Consumer Duty should
help firms retain and attract customers and will enhance the
competitiveness of our financial services sector," Mills said.
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