UK investment market plagued by scams - FCA
Britain’s financial services industry has been blighted by too many scams and scandals and should be overhauled, the regulator said on Tuesday.
The Financial Conduct Authority said an urgent review was needed to win back consumer confidence.
It opened a consultation what more it can do to help the market offer a range of products that meet straightforward investment needs and how people can be better protected from scams.
UK consumers have been regular victims of scams such as the mis-selling of payment protection insurance and being defrauded of their pension funds since the liberalisation of rules on withdrawals.
The FCA has issued a "call for input to help it decide how existing rules can address such "harms" and identify where other authorities could help, or if the government should consider extra powers for the watchdog.
"The consumer investment market is not working as well as it should," said Christopher Woolard, the FCA's interim chief executive.
"There have been too many scams and scandals and too often consumers are offered unsuitable products or advice. As a result, many consumers lack confidence in the investment market."
The FCA is also inviting opinions on how it can use the regulation of financial promotions to make it easier for people to understand the level of regulatory protections they will have when they invest.
It also wants views on how it can help the market to be competitive and what more can be done to ensure people are appropriately and fairly compensated when they lose money because of something a regulated firm has done or failed to do.
The FCA earlier this year imposed a temporary ban on the mass marketing of speculative mini-bonds and in June announced proposals to make the ban permanent.