A new financial regulator – the FCA - takes over from the Financial Services Authority
How will the new regulator, the Financial Conduct Authority – work and what does the PRA (Prudential Regulation Authority) do?
The Financial Services Authority, which was the first financial regulator to have statutory powers (banks, insurers and other financial firms were self regulated before 2001), is being abolished today. In its place are two new regulators: the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). How will they work and will we be better protected as a result?
The FSA says that flawed bonus schemes encourage mis-selling
The financial regulator wants to clamp down on commission paid by banks and insurers.
If you think the financial services industry is run in a way that ignores the needs of its customers, you're not alone. The head of the new regulator (which will take over from the Financial Services Authority next year), wants financial companies to get rid of ‘flawed’ incentive and bonus schemes that reward mis-selling and to stop viewing customers as ‘sales targets’. This is how the regulator wants to change it:
The FSA says financial companies are selling products that are too complicated.
The FSA also says that some banks’ incentive packages for staff don’t give consumers a good deal.
The Financial Services Authority, the financial regulator, seems to have had its hands full dealing with scandals such as PPI mis-selling, structured products and banks failing to handle their customers’ complaints properly. But it’s also been looking at where consumers could be in danger of being given bad advice or buying products that aren’t right for them. And if the regulator’s concerned, you should be concerned as well.