Consumer protection in relation to personal finance

Question 1

evaluate Financial Conduct Authority (FCA)

Answer 1

The FCA is an independent organisation that is the
conduct regulator for 59,000 financial services
firms and financial markets in the UK.

It is funded via fees charged to the financial service
providers and their work focuses on 3 key areas:

Authorisation

Supervision

Enforcement

Question 2

evaluate Financial Ombudsmen Service (FOS)

Answer 2

Appointed by the government to protect and
represent consumers who are in disputes with
financial service providers. They only get
involved if these disputes cannot be settled
between the financial provider and the
consumer.

Question 3

evaluate Financial Services Compensation Scheme (FSCS)

Answer 3

An organisation that pays compensation to
consumers when the financial service provider is
unable to.

Protects savers up to £85,000 if the institution
goes bust and the saver will be compensated by
the FSCS.

Question 4

evaluate Legislation – Consumer Credit

Answer 4

Laws that have been passed to regulate any
business offering credit to consumers.

These laws are passed by the UK government to
ensure consumers are protected and that
financial providers do not take advantage.