The Financial Conduct Authority will have a duty to ensure consumers have access to financial services under a Government amendment to the Financial Services bill.
At the report stage of the bill in the House of Lords yesterday, the Government bowed to pressure from Labour to take account of the availability of services.
Labour peer Baroness Dianne Hayter, who leads the party on consumer issues in the bill, said: “The Government has moved on access and its amendment helps the ease with which people can access financial products. It is really important, we do not want to blow our own trumpet but it is quite a big tick we have on that.”
The Financial Services Consumer Panel also lobbied for the requirement, saying it was necessary to balance the FCA’s new competition powers.
FSCP chair Adam Phillips says: “We were concerned that without this concession people could suffer real harm.
“You only have to look at the withdrawal of banking services in rural areas or geographic restrictions on insurance to see the importance of the new FCA ensuring widespread access to financial services.”
Technology and Technical founder and director Kim North says: “The Government should do everything it can to ensure people have access to whole of market IFA services or good restricted services. It has to be careful that mass market consumers are not left in the hands of the banks which often offer a very restricted proposition.”