Context
The FCA has introduced a new consumer section to its website, which is the result of extensive research into how and why consumers engage with the FCA, what it can offer consumers, and how it can do better.
Key points to note
As a regulator, one of the FCA’s core objectives is to protect consumers. Although, with many struggling to pay bills, and scammers often targeting the most vulnerable, its approach had to evolve. The FCA had to address the challenges consumers are experiencing and make sure people feel comfortable and confident approaching it.
A previous review of the FCA’s channels revealed that consumers were often overwhelmed with its website, and were unclear where to start to find the information they needed.
To address this, it has reviewed what it communicates to consumers and looked at the subjects it should be covering; also identifying the subjects that were better covered by other members of the regulatory family.
The FCA’s new consumer section doesn’t attempt to engage consumers on all financial matters, recognising that it isn’t a financial educator. Instead, this new section has been streamlined to focus on what the FCA has termed ‘the 5 Rs’:
- Risks: The FCA wants to help consumers identify and avoid unwanted risks, and understand what those risks mean for them.
- Rights: The FCA wants to make sure consumers understand their rights, and what they should expect from firms.
- Remedies: If something does go wrong, the FCA wants to make sure consumers know how to complain and claim compensation if their provider goes out of business.
- Rule changes: Where consumers are affected by rule changes, the FCA wants to make it completely clear when they need to act.
- Reporting: If they suspect a scam, or have experienced poor conduct, the FCA wants to encourage consumers to report it.
It has also improved its tone and language, while additionally introducing a new A-Z glossary of financial terms, with quick definitions.
Next actions
None – for information and awareness.