Financial Conduct Authority clarifies its future interventions in financial market

 

The independent financial public body has announced that next year, amongst other things, it will focus on credit- specifically examining the issue of vulnerable consumers, high-cost credit and the difficulties around long term savings and retirement. 

 

 

The independent financial public body has announced that next year, amongst other things, it will focus on credit- specifically examining the issue of vulnerable consumers, high-cost credit and the difficulties around long term savings and retirement. 

 

The Financial Conduct Authority is accountable to the Treasury and is funded by the firms that it regulates. The FCA’s remit primarily involves protection: of consumers, the integrity of financial markets and indeed of the UK financial system as a whole. It also strives to promote effective competition in the interest of consumers. 

 

The publication of the Business Plan follows a rapid rise in consumer credit which has made headlines over the past few months. The plan set out by the watchdog includes an examination of personal finances, leading on from it’s consultation on credit card debt which ends in July. 

 

There has been a recent consensus that the spike in consumer credit is led by a rise in car finance agreements. The Finance and Leasing Association has said that 86.5% of private new car sales were financed by its members in the twelve months to February. The FCA has said it will undertake an exploratory piece of work on the motor industry and how their finance products are sold. 

 

You take a look at the FCA’s Business Plan here.