FSA 'task force' to aid consumer confidence in financial industry

The Financial Services Authority (FSA) is to set up a task force designed to "significantly raise" consumers' capability and confidence in dealing with financial services and products.

The FSA's new Chief Executive John Tiner told a Corporation of London dinner at the Mansion House that firms and consumers had a "mutual interest" in the market working better and this meant having more "capable and confident consumers" who can identify their needs and then know what to do about them.

He also called for private and public sector bodies to "coalesce" around a national strategy for financial capability.

"The prize here is very great indeed. If capable consumers acting collectively can be a more influential force in the market there could be a consequently less rigorous regulatory regime," he said.

Mr Tiner said that he would oversee the setting up of an Advisory Group charged with establishing, by 31 March next year, a clear view of what the industry, the government and other parties should best do.

"This is not product regulation through the back door, but a tool to provide an early warning of products that may be about to be launched or are circulating in the market that present particular dangers to consumers," he said.

John Tiner also called upon relevant agencies that they must act "swiftly and decisively" when necessary.

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; securing the appropriate degree of protection of consumers; and fighting financial crime.

(gmcg)