The new committee would draw together specialists from the three bodies to spot emerging risks, increasing the ability of the regulators and ombudsman service to respond quickly and decisively to market threats.
The committee would identify any risks with the potential of turning into widespread problems, and determine fast and effective ways of dealing with them, whether through regulatory action or consumer complaints.
The work of the committee set out in today’s discussion paper would update the wider implications process, This is often triggered once a problem has already had an impact on both the industry and consumers.
The new committee would draw together specialists from the three bodies to spot emerging risks, increasing the ability of the regulators and ombudsman service to respond quickly and decisively to market threats.
The focus on emerging risks also complements the FSA’s ongoing intensive supervision regime, where firms’ business models are scrutinised along with their product design and marketing material to assess whether any single aspect or, indeed, the entire operation poses unacceptable risks to customers or the wider industry.
FSA director of conduct policy Sheila Nicoll said:
"Complaints handling is a priority area within the FSA’s intensive supervision agenda. The co-ordination committee is a clear indication of the intention, and will, of the authorities to work even more closely together to improve the experience of consumers, and to avoid problems happening in the first place."
© FSA - Financial Services Authority
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