On February 2, the Office of the Complaints Commissioner published a decision urging the Financial Conduct Authority (FCA) to review rules for regulated entities in the context of its consumer protection objectives.
The original complaint made to the Complaints Commissioner raised concerns regarding the fact that FCA-authorized firms are not required to disclose to their clients those activities that are not regulated by the FCA. The Complaints Commissioner agreed with the complainant’s concerns that it is important for consumers to understand which activities firms conduct that are unregulated, so as to further be aware that no recourse for compensation through the Financial Ombudsman Service and the Financial Services Compensation Scheme is available should something go wrong in relation to those activities. Given that in these circumstances the only recourse available is pursuing a potentially costly court action, the Complaints Commissioner felt it necessary to raise the issue for the FCA’s consideration.
A copy of the Complaints Commissioner’s decision can be found here.