FCA asks for views on consumer investment market in wide-ranging call for input

The feedback obtained by the regulator will shape the FCA's work in the coming years on improving the consumer investment market.

The FCA is looking at areas it believes the consumer investment market is not working well. As part of the call for input, it is asking the following questions:

• What more can we do to help the market offer a range of products that meet straightforward investment needs? 
• How can we better ensure that those who have the financial resources to accept the risks of higher risk investments can do so if they wish, but in a way that ensures they understand the risk they are taking?  
• How can we use the regulation of financial promotions to make it easier for people to understand the level of regulatory protections afforded to them when they invest?  
• What more can we do to ensure that when people lose money because of an act or omission of a regulated firm, they are appropriately compensated and that it is paid for fairly by those who cause the loss?  
• How can people be better protected from scams?
•  How do we help this market to be competitive, with firms striving to offer better products and services?  

The FCA is also asking respondents what more can be done to ensure compensation is paid for fairly by those that cause the loss. The call for input paper noted the way the Financial Services Compensation Scheme (FSCS) is funded can mean the "polluter" does not always pay. 

Though the FCA has asked about compensation, it later said it is not planning to have another fundamental review of FSCS funding "at this time", though it suggested it could look into ways to ensure "riskier" firms pay more towards the FSCS.

FCA interim chief executive Christopher Woolard said: "The consumer investment market is not working as well as it should. There have been too many scams and scandals and too often consumers are offered unsuitable products or advice. As a result, many consumers lack confidence in the investment market. 

"This call for input is aiming to help shape the future of consumer investments, including regulation, to ensure consumers can have faith in the market."

Open Money founder Anthony Morrow was less enthused by the questions posed by the FCA. He said: "All of those questions have, in one way or another, been asked before, and we are still where we are.

"Perhaps reign in the ambitious and deliver something."

Respondents have until 15 December to get back to the FCA with feedback. 

• Tweet  
• Facebook  
• LinkedIn  
• Send to  

• Topics
• Regulation