On 12 October 2010, the above Order was published, bringing the following provisions of the Financial Services Act 2010 (the “2010 Act”) into force:
- Removal of the FSA’s public awareness objective. One of the FSA’s original regulatory objectives under the Financial Services and Markets Act 2000 was to promote public understanding of the financial system. The 2010 Act removed this objective as part of the transfer of the FSA’s financial education role to the new Consumer Financial Education Body (the “CFEB”).
- Publication of decision notices. The 2010 Act amends section 391 of the FSMA, allowing the FSA to publish decision notices, as well as final notices: the Order specifies that this power will not be available in cases where the FSA has given a warning notice before 12 October 2010.
- Consumer redress schemes. The 2010 Act introduced new powers for the FSA to make rules requiring firms to establish and operate consumer redress schemes when there is evidence of widespread or regular failings causing consumer detriment.
- Powers enabling HM Treasury to require the Financial Services Compensation Scheme (the “FSCS”) to act in relation to other schemes paying compensation in respect of financial services providers. The purpose of the provision is to allow the FSCS to act as an agent to deliver compensation to UK customers of overseas financial firms.
The Order also brings into force on 1 April 2011 the following provisions of the 2010 Act:
- Powers to allow the OFT to levy consumer credit licensees to meet a proportion of the CFEB’s costs.
- Powers to allow the FSA to appoint an independent reviewer to assess the CFEB’s effectiveness.