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News and Events

17th February – Podcast of the fourth debate available

You can now listen to an exclusive podcast featuring the panellists from the fourth seminar.

 

22nd December – Consumer Focus’ response to OFT decision to drop bank charges case

Commenting on today's decision by the Office of Fair Trading to drop the bank charges case following last month’s defeat in the Supreme Court, Philip Cullum, Acting Chief Executive of Consumer Focus, said:

‘Consumer trust in banks is at an all-time low. This decision will add to the public frustration towards the banking sector. Banks must realise that consumer confidence in the sector is incredibly weak and that real changes are needed.

‘Consumers need concrete assurance that strong levels of protection will be introduced and that there is the scope to challenge the industry on issues such as overdraft charges.’

 

22nd December – Consumer Focus appoints new Chief Executive

Consumer Focus, the consumer champion, has announced today the appointment of Mike O’Connor as its new Chief Executive from 19 January 2010.

Mike is currently Chief Executive of the Olympic Lottery Distributor which supports London 2012. He has worked across Government and the voluntary sector. He has been involved in campaigning for consumers’ rights at Consumers International, an international federation of consumer bodies, where he was Director for Developed Economies. His early career included senior roles at the HM Treasury, the Cabinet Office and the Department of Health, where he was Private Secretary to the Minister of Health. Mike received a CBE in The Queen’s Birthday Honour’s List in 2000. Previously, Mike was Chief Executive of the Millennium Commission, responsible for distributing funds generated by the National Lottery to mark the start of the new millennium.

Mike will lead a strong team at Consumer Focus and will be able to use its full range of powers and resources to deliver for consumers. His role is to change the behaviour of business, Government and regulators to ensure consumers are at the very heart of their thinking.

Lord Whitty, Chair of Consumer Focus, said: ‘We are delighted that someone of Mike’s calibre is joining us. He has led complex organisations in the public and voluntary sectors. Mike also brings with him a passion for promoting and protecting consumer rights, and a wealth of experience in shaping public policy at the very highest level. We believe he offers a strength of leadership and focus that will give consumers the strongest voice in an economic climate where they are under more pressure than ever before.’

 

29th October – Podcast and summary of third debate available

You can now listen to an exclusive podcast featuring the panellists from the third seminar and read a summary of the main points of discussion raised during this third event.

 

20th October – FSA sets out major reforms for the mortgage market

The Financial Services Authority (FSA) today sets out proposals for the major reforms required in the UK mortgage market to ensure that it works better for consumers and is sustainable for all market participants. The proposals, published in the mortgage market review discussion paper, reflect the FSA’s changed approach to a more intrusive and interventionist style of regulation.

The review’s key features are:

  • Imposing affordability tests for all mortgages and making lenders ultimately responsible for assessing a consumer’s ability to pay;
  • Banning ‘self-cert’ mortgages through required verification of borrowers’ income;
  • Banning the sale of products which contain certain ‘toxic combinations’ of characteristics that put borrowers at risk;
  • Banning arrears charges when a borrower is already repaying and ensuring firms do not profit from people in arrears;
  • Requiring all mortgage advisers to be personally accountable to the FSA;
  • Calling for the FSA’s scope to cover buy-to-let and all lending secured on a home.

 

28th September – Podcast and summary of second debate available

You can now listen to an exclusive podcast featuring the panellists from the second seminar and read a summary of the main points of discussion raised during this second event.

 

20th August – Debate 2 details announced

At our second seminar Professor John Kay will present a paper considering how the fallout of the financial crisis has affected competition in retail financial services. The last two years have seen major structural changes to the market for financial services driven by nationalisation, state backed recapitalisation and considerable consolidation. This raises some important questions for consumers; for example, where normal competition and state aid rules were waived, was there evidence of trade off between financial stability and full and fair competition? What balance between these two objectives delivers the greatest consumer welfare? Is the structure of the market for banking, mortgages, credit cards, investment products, general and life insurance right? If competition has been harmed, should past interventions be unravelled and distortions created by them be removed? If there is to be a future reference to competition regulators, how should this be framed? And what other interventions, if any, might be necessary?

For more details check the Focus on Finance website.

 

20th July – Consumer Focus reaction to the Conservatives’ proposals for the regulation of financial services below

Commenting on the Conservatives’ proposals for the regulation of financial services, Philip Cullum, Deputy Chief Executive, Consumer Focus, said:

“The FSA has been slow to step in and help the consumers it was set up to protect. For too long it has shied away from tough enforcement and has let the financial sector get away with treating customers appallingly.

“Consumers must be at the heart of any new regulatory framework, whatever shape it takes. To this end it’s encouraging to see proposals for consumer experts to sit on the board of the proposed Consumer Protection Agency.

“We have long argued that the FSA should make information - such as complaints data – public so consumers can make decisions on financial firms for themselves. The proposals to name and shame financial firms would make this information available to consumers and encourage them to start competing on reputation, not just price.

“The spate of mergers in the retail banking sector raise serious questions about competition and choice for consumers. The proposal for an investigation comes not a moment too soon, but Government should pick this up so it isn’t delayed until after the next election.”

 

20th July – Conservative Party launches its financial services Policy White Paper

George Osborne has today launched the Conservative Party’s financial services Policy White Paper. Proposing a large overhaul of regulatory architecture, a Conservative government will transfer financial services oversight from the FSA to the Bank of England. An examination of the effects of consolidation in the banking sector will be undertaken and the Conservatives also propose to create a Consumer Protection Agency which will bring together the consumer powers currently held by the FSA and OFT.

Download the Conservative Party’s financial services paper.

 

20th July – Vince Cable delivers speech on reform of banking regulation

Vince Cable has today outlined the Liberal Democrats’ plans for reforming the financial services sector. In his speech he called for:

  • RBS and Lloyds to be broken up before they are returned to private ownership
  • Highly paid bankers to publish details of their remuneration and confirm they are resident and domiciled in the UK
  • The FSA to remain as a unitary regulator
  • A long-term role for state banking, rather than the quick sale of state-owned banks
  • The scrapping of the ‘woefully misconceived' Asset Protection Scheme

 

16th July – Walker Review interim report published

Walker has today published his interim report on corporate governance for consultation. The report considers:

  • Board size, composition and qualifications
  • Functioning of the board and evaluation of performance
  • The role of institutional shareholders: communication and engagement
  • Governance of risk
  • Remuneration

The consultation runs until 1st October, download the report.

 

14th July – Podcast and summary of first debate available

You can now listen to an exclusive podcast featuring the panellists from the first seminar and read a summary of the main points of discussion raised during this first event.

 

8th July – Government launches Reforming Financial Markets White Paper

The Government today published its White Paper on financial services. The centerpiece of the government’s plan is the creation of a new Council for Financial Stability bringing together the FSA, HM Treasury and the Bank of England to focus on macro prudential issues. There are also plans in the white paper to create a National Money Guidance Service and a new consumer body on financial capability will be formed.

Read the Chancellor’s statement to the House of Commons..

Download the White Paper.

 

8th July – Focus on Finance: Financial Regulation – Consumer Safeguard or Straightjacket?

The first seminar in the Focus on Finance series took place today at the Royal Society of Arts. John Howard presented his paper on consumer protection in which he discussed the merits of establishing a ‘suite of safe products’ and called for independent financial advisors to be paid for by the consumer seeking advice. Christine Farnish of Consumer Focus chaired the debate and Otto Thoresen of AEGON UK and Neil O’Brien of Policy Exchange were panelists. Read more details of the launch seminar.

 

7th July: Consumer Focus comment in advance of Financial Services White Paper

Commenting on the eve of the Treasury White Paper, Ed Mayo, Chief Executive, Consumer Focus, said:

“The real costs of the credit crunch are being landed on consumers, as banks fatten their margins and limit credit to all but the most profitable.

“The Treasury White Paper is the best chance that we have to get the balance right. The government needs to ensure that regulation does not just address yesterday’s problems but also the way that banks are behaving now.

“We welcome the signs that government will improve consumer protection in the financial services market.

“The one change that could make most difference is to introduce new ways for consumers to come together to take class actions when things go wrong. The bank charges case shows that consumers urgently need quick, cheap and effective redress.

“More needs to be done to help consumers switch between financial firms. Switching rates are low in this sector, but firms would soon take notice if consumers were given clear information about company performance and started to vote with their feet.”

 

6th July 2009 - Focus on Finance website goes live

The Focus on Finance website was launched today. Details of forthcoming seminars in the Focus on Finance series can be found on this site, along with links to the papers when published, and a forum for further comment and debate.

 

2nd July 2009 - OFT to review high cost consumer credit sector

The OFT today launched a review into the supply of high cost credit as part of its ongoing Financial Services Strategy. The OFT estimates that the size of the high cost credit sector is up to £35 billion annually. Many of the customers affected are from vulnerable groups and the industry is characterised by loans for small amounts with high APRs.

 

2nd July 2009 – Consumer White Paper launched

“A Better Deal for Consumers - Delivering Real Help Now and Change for the Future”, published by the government, sets out action to encourage responsible lending and provides a longer term framework to strengthen and enforce consumer rights in the wider economy and a changing financial environment. Download the white paper.