The Government has given the FSA the power to publicise its enforcement actions at an earlier stage in the enforcement process.
A Commencement Order set out in Parliament by the Treasury today has granted the FSA the power to publish decision notices as well as final notices from the regulator’s enforcement division.
This means that the FSA can publicise enforcement actions earlier, rather than only at the final notice stage after the person involved has has had the opportunity to refer the matter to a tribunal.
The order has also enacted powers that form part of the Financial Services Act 2010 which allow the FSA to set up consumer redress schemes to deal with specific market failures.
An effective 15-year long stop would apply to advice reviewed by these specific consumer redress schemes.
The power would be used in instances where there is evidence of widespread or regular failings that have caused consumer detriment.
FSA managing director of risk Sally Dewar says: “This power to deliver prompt and effective redress for consumers is an important new tool for the FSA, which increases our ability to get redress for consumers when firms have not followed our rules.
“The power would obviously be used proportionately. It is not a substitute for working with industry where there is the potential to bring an issue to a fair and speedy conclusion.
“The FSA will, however, seek to use this power where necessary to ensure consumers are fairly treated.”
The order also includes the requirement for the FSA to have regard to the information provided by the Consumer Finance and Education Body in pursuit of its consumer protection objective.