The Financial Services Consumer Panel wants to see a duty of care for customers imposed on the industry under the new regulatory framework.
Speaking at last week’s joint committee hearing, panel chairman Adam Phillips said a duty of care for customers would strengthen the regulator’s treating customers fairly initiative.
Phillips said: “Written into the Financial Services and Markets Act and carried across into this draft bill is the concept that consumers should take responsibility for their actions. Looking from the consumer perspective, there is an issue about whether the industry actually delivers a reasonable product to consumers in a way that they can effectively engage with.
“We would like to see written into this bill a duty of care for customers imposed on the industry as a principle. The FSA has tried to go as far as it can with TCF and said it found it very difficult to make it stick. We think a duty of care would introduce the expectation that the industry should treat their customers in a way which is fair and reasonable.”
But the Financial Services Practitioner Panel disagreed a duty of care was necessary. Chairman Russell Collins said: “We practitioners really want to retain this idea of consumer responsibility. We already have duties of care that are imposed on firms through the act. If this is extended in any way, that would require quite complex legal duties.”