Customer Protection

if the financial industry was left with out regulations they could take advantage of customers

types of Customer Protection

financial conduct authority

• regulates conduct of the financial service industry in the uk

• suspend/stops individuals or firms from partaking in regulated activities

• issue fine of those who break the laws

• focus on 3 areas: authorisation, supervision and enforcement

financial ombudsman authority

• settles complaints between customers and financial businesses

• apointed by the goverment

• funded by compusory fees charged to all regulated financial institutions

financial service compenstation scheme

• that protects savers and compensates them if thier savings provider ceases trading and is unable to return

legislation

• protects info collected by agencies

• laws passed to regulate any business offering credit to customers

pros and cons of customer protection

pros

• protects from expliotation

• and losses

cons

• could get rid of too many firms can result in a less competitve market that can subsequently charge higher than they previously did