Govt to allow consumer groups to force probes into financial misselling

Consumer groups will be given the power to force regulators to investigate complaints of widespread misselling of financial products under the Financial Conduct Authority, Treasury financial secretary Mark Hoban will announce today at a Which? conference.

The Financial Times reports the FCA, which will take over consumer protection issues from the FSA in 2013, would be obliged to evaluate such a complaint and respond within a set period.

Hoban says: “We’ve proposed a range of new powers for the regulator so that they can give better protection to consumers, including the power to ban toxic products. But we want to go further by giving front-line consumer groups like Which? the power to hold the regulator to account where there has been widespread mis-selling of financial services products.”