FCA warns scammers, firms trying to exploit Covid-19 crisis
Britain's financial regulator said it would clamp down on any market behaviour that tried to exploit the coronavirus crisis “with all relevant force”.
The Financial Conduct Authority said the market turmoil caused by the pandemic had increased the risk of scammers trying to rip off vulnerable consumers.
It also warned that the scale of the crisis meant it could be months before it could address its own priorities.
“We will remain vigilant to potential misconduct. There may be some who see these times as an opportunity for poor behaviour – including market abuse, capitalising on investors’ concerns or reneging on commitments to consumers,” the FCA said on Tuesday as it set out plans for the next three years.
“Where we find poor practice, we will clamp down with all relevant force. We are working with a range of partners, including other regulators, law enforcement agencies and firms and consumer groups, to raise awareness of the increased risk of scams in the current uncertain context and help consumers protect themselves.”
It said the shock to markets was is not like previous economic downturns, “but nor will it follow the pattern of a natural catastrophe, where the damage can be sized relatively quickly”, adding that there was “enormous uncertainty” about the size and nature of potential damage.
"But it may be months before we are in a more stable position and can focus fully on the activities in this plan. Even then, the shape and scale of the issues we need to address may have changed significantly as a result of the virus,” the FCA said.
"We may publish an update to this plan if we believe it is necessary."
The FCA has been part of plans along with the Bank of England and government to mitigate the impact of the coronavirus. Last month it provided guidance for mortgage providers on the three-month payment holiday and measures to support users of consumer credit products.