EVENT: Should banks have a duty of care to their customers?
- Christopher Woolard, Executive Director of Strategy and Competition, FCA
- Sue Lewis, Chair, Chair, Financial Services Consumer Panel
- Mary Kyle, Governance & Standards Adviser, City of London Corporation
- 9.00am-10.30am, Tuesday 16th October 2018, Committee Room 10, House of Commons
- To register please email email@example.com
The FCA is currently exploring the potential merits of introducing a new Duty of Care for banks and other financial firms. This event will discuss the implications that this could have for consumers and firms. Points raised at this event will be submitted to the FCA by New City Agenda.
The ten years since the financial crisis have seen the exposure of widespread misconduct arising from PPI, Interest-rate Hedging Products and the treatment of small businesses in financial difficulty. There are also longstanding issues which range from excessive overdraft charges to leaving some of their most loyal customers languishing in poor value products.
Some stakeholders believe that the introduction of a Duty of Care that would oblige providers of financial services to avoid conflicts of interest and act in the best interests of their customers. A new duty could also change how firms treat vulnerable customers. A similar duty already exists for other sectors, for example, for legal and medical professionals. The introduction of a new duty could also strengthen the incentives for banks and other firms to change their cultures.
The FCA’s discussion paper raises a number of questions:
- Is there a gap in the FCA’s regulatory framework which could be addressed by the introduction of a new duty?
- What might a new duty do to improve the way banks treat their customers?
- How might the introduction of a new duty improve the treatment of vulnerable customers?
- How could a new duty improve the effectiveness of the FCA by encouraging it to be stronger and more proactive to stop consumers and small businesses suffering harm?
Christopher Woolard (Executive Director of Strategy and Competition) from the FCA will outline the issues being considered by the FCA.
Sue Lewis (Chair, Financial Services Consumer Panel) will give the consumer perspective on the introduction of a new duty.