Context
The FCA has published a webpage by the FCA’s Joanna Legg, Head of Consumer Policy & Outcomes. The webpage updates on the impacts on financial abuse and this can involve the manipulation of financial products and services. Under the FCAs consumer protection objective, the FCA has a role in securing an appropriate degree of protection for consumers of financial services. The FCA understand that experiencing abuse can leave those affected in vulnerable circumstances, impact their experiences of financial services, and potentially put their financial future at risk.
Key points to note and next actions
The Consumer Duty sets higher and clearer standards of consumer protection across financial services, requiring firms to put their customers’ needs first. The FCA are embedding awareness of issues around domestic financial abuse throughout the FCA with internal activity and training. The FCA will continue to work with the Financial Ombudsman Service, government, domestic abuse charities and trade associations, to understand how firms are identifying and managing harm for victim survivors of domestic financial abuse.
The FCA published in March 2024 their strategy for Consumer Lending. The three key areas the FCA will focus on are;
- Reducing and preventing serious harm
- Setting and testing higher standards
- Promoting competition and positive change.