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FSA, FOS and OFT set out emerging complaint risks

The FSA, the Financial Ombudsman Service and the Office of Fair Trading have formed a joint committee to spot emerging risks that could cause widespread consumer detriment.

The Coordination Committee was first proposed in an FSA discussion paper on consumer complaints published last March.

The FSA has today published its feedback statement, which details the set up of the new committee.

The Coordination Committee has held three meetings so far, including two pilot meetings in the second half of last year.

The last meeting in February was chaired by FSA director of conduct policy Sheila Nicoll.

Minutes from the February meeting reiterated concerns about exchange traded funds and exchange traded products and whether consumers were being made aware of the costs of self-invested personal pensions compared to alternative products.

‘Debt freeze’ or ‘debt waiver’ products were also highlighted as a concern, particularly the unclear product terms, with the committee anxious that they could operate as “payment protection insurance replacements”.

In its feedback statement, the FSA also addressed the issue of  claims management companies.

The FSA says it will shortly put out a joint statement with the claims management regulator, part of the Ministry of Justice, detailing firms’ responsibilities where they receive complaints from claims management firms.

The FSA says: “We recognise concern about the quality of services provided by some CMCs to complainants and the impact that CMC activity can have in escalating the number of complaints about an issue.

“In our view, the extent to which CMCs can play a role in fuelling mass claims needs to be balanced against the role they can also play in improving access to justice for consumers of financial services. Key to this is the value for money that CMCs offer consumers, given that consumers have access to complaint handling procedures that are free and intended to be easy to use.”

The Coordination Committee will publish an annual account of its activities. The next meeting will be held in May.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. I can give them the main cause of risk – Regulation

    How about the mass claims created by the FSA, the FOS and the FSCS?

  2. Mirror mirror on the wall… replace all those works of art with something which shows the reflection of the cause of claims.

  3. The easiest thing to do is not have any investment product. No product, no regulataion, no miss-selling.

    They only want to bring up complaints or possibile situations of future complaints to keep themselves in work.

    Abolish the FOS, FSA, and FSCS – they only encourage people to complain, to seek redress, and incurr higher fees through spurious claims being awarded.t

  4. All the aforegoing comments seem to agree. The FSA, FOS, and OFT have decided what they consider to be risky and, as a result, all sales of such products will go under the microscope – IFAs will have to prove themselves innocent and every client buying-in to these products will be considered to be a victim of bad advice.

    As for CMCs, it is the regulator that ‘loads the gun’ and points it – the CMCs just pull the trigger.

    As long as the FSA and other leeches can carry on encouraging the public to complain, the longer they can carry on with their snouts in the financial services trough.

  5. 1 question !!

    Any representation from the IFA community ?

    Probably the one area of information on this, that is in-valuable.

    Sorry I forgot these people know what is best for everyone, so no need really.

    I really should know my place !!

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