The Financial Services Consumer Panel has welcomed changes to the Financial Services Bill that will allow the regulator to take account of access to financial services for consumers.
Following pressure from the Panel and other consumer groups, the government moved an amendment allowing the new Financial Conduct Authority (FCA) to consider access to financial services, in order to balance the effect of its new competition powers.
The Government’s amendment 27 in the name of Lord Sassoon agreed on Tuesday reads as follows:
Page 22, line 9, at end insert—
“( ) the ease with which consumers who may wish to use those services, including consumers in areas affected by social or economic deprivation, can access them,”
A requirement for the FCA to take into account the availability of basic financial services was one of the key changes requested by the Panel. The Panel was concerned that without this change people could be denied access to banking facilities in rural and poorer communities and we would see further reductions in the availability of insurance.
“The change to the Bill on access is a definite win for consumers,” said Adam Phillips (pictured), Consumer Panel chair.
“We were concerned that without this concession people could suffer real harm. You only have to look at the withdrawal of banking services in rural areas or geographic restrictions on insurance to see the importance of the new Financial Conduct Authority ensuring widespread access to financial services.
“The Panel has worked closely with other consumer groups to lobby for this change and we are pleased to see the Government has listened. There is no point calling for more effective competition for banking or insurance services if people cannot get access to them in the first place.”
