customer protection - B

Question 1

Financial Conduct Authority
(FCA)

Answer 1

• independent organization with a remit to regulate the actions of provides of financial servers.
• funded by government fees.
• organization focuses on:
• authorization (permitting trade)
• supervision (ensuring practices prioritize customers)
• enforcement (ensure standards)
• it’s impartial and therefore unbias.

Question 2

Financial Ombudsmen Service
(FOS)

Answer 2

• appointed by government but separate entity to the banks
• organization that helps customer dispute any issues
• funded by compulsory fees charged to all regulated financial institutions
• prior to involving the FCA

Question 3

Financial Services Compensation Scheme
(FSCS)

Answer 3

• organization that will pay compensation if interest rates are too high or bank goes bankrupt

Question 4

Office of Fair Trading
(OFT)

Answer 4

• government organization that was established to regulate all of the markets
• aim to encourage fair practices and healthy competition
• since 2014 responsible for financial institutions passed by the FCA.

Question 5

Legislation (consumer credit)

Answer 5

• these are laws passed by UK government to enforce the regulation of any firm
• any firm offering any loan, credit, hire purchasing requires registration with the FCA