Financial Services Bill: MPs enquire on consumer responsibility

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A new joint committee of six MPs and six peers is to enquire about consumer responsibility under the new 'twin peaks' regulatory system as it begins its pre-legislative scrutiny of the draft Financial Services Bill (FSB).

The committee is asking "interested" organisations and individuals whether the new system strikes the right balance of responsibility between consumers and firms. It will also enquire about whether the Financial Conduct Authority's (FCA's) new powers in the area of consumer protection are appropriate. Under current plans, the FCA, one of the Financial Service Authority's (FSA's) replacement entities, will have the power to block the sale of otherwise suitable financial products where it finds consumers are being hit by poor sales and distribution processes. The MPs and peers will a...

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