UK financial firms told to speed up consumer protection preparations

LONDON, Jan 25 (Reuters) – A few of Britain’s monetary corporations will not be able to adjust to a “step change” in client safeguards from July except they speed up preparations, the Monetary Conduct Authority mentioned on Wednesday.

The brand new ‘client obligation’ guidelines set larger requirements on monetary corporations to keep away from ripping off clients.

Regulators wish to draw a line below pricey mis-selling scandals going again to endowment mortgages within the Nineteen Eighties and fee safety insurance coverage in recent times.

The principles apply on July 31 to new and current services or products which might be nonetheless being bought or renewed, and a yr later to services already bought however now not on supply.

“For corporations that are additional behind in making the mandatory adjustments, there’s time to place that proper and for them to point out they’re performing within the spirit of the brand new Obligation,” mentioned Sheldon Mills, FCA government director for customers and competitors.

Companies should not be over-confident that current client safety insurance policies shall be enough, and work with different corporations of their distribution chains, the FCA mentioned.

A overview discovered corporations unable to call the particular person liable for making use of client obligation guidelines, with some boards not engaged sufficient given the foundations require a big change in tradition, the FCA mentioned.

Reporting by Huw Jones
Modifying by Bernadette Baum

Our Requirements: The Thomson Reuters Belief Rules.