By Huw Jones
LONDON (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.Â
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)
