B3 - Consumer Protection

Question 1

What is the Financial Conduct Authority (FCA)?

Answer 1

• It’s an independent organisation that’s the conduct regulator for 59,000 financial services firms and financial markets in the UK.
• It’s funded by fees to assure authorisation, supervision, enforcement.

Question 2

What is the Financial Ombudsman Service (FOS)?

Answer 2

• It’s appointed by the government to protect and represent consumers in disputes with financial service providers if disputes can’t be settled between provider and consumer.
• Funded by compulsory fees charged to all regulated financial institutions.

Question 3

What is the Financial Services Compensation Scheme (FSCS)?

Answer 3

• It’s an organisation that pays a compensation of up to £85,000 to consumers when the financial service provider/institution is unable to or goes bankrupt.

Question 4

What is the Legislation Consumer Credit?

Answer 4

• It’s the laws passed to regulate any business offering credit to consumers to ensure consumers are protected and that the financial providers don’t take advantage.