B.3 Consumer Protection

Question 1

What are the four different protections from financial institutions?

Answer 1

1. Financial Conduct Authority
2. Financial Ombudsmen Service
3. Financial Services Compensation Scheme
4. Legislation: Consumer Credit

Question 2

What is the Financial Conduct Authority (FCA)?

Answer 2

Independent organisation with a remit to regulate the actions of providers of financial services. Funded by membership fees charged to financial service providers. They protect consumers, protect financial markets and promote competition.

Question 3

What is the Financial Ombudsmen Service (FOS)?

Answer 3

Organisation appointed by the government to represent the interests of the consumer in disputes with financial service providers, only when they can’t be satisfactorily sorted in the first place.

Question 4

What is the Financial Services Compensation Scheme (FSCS)?

Answer 4

Organisation in the UK that will pay compensation to a consumer of financial services if the service provider is unable to.

Question 5

What is the Legislation: Consumer Credit?

Answer 5

Laws passed by the UK government to enforce the regulation of any firm offering credit to consumers.