Most people (73%) think that the FSA wasn’t effective at standing up to banks in the run-up to the financial crisis and eight in ten (82%) feel the financial watchdog needs to have more power to force the banks to change.
Although there is widespread agreement that a financial watchdog is needed to ensure that banks treat their customers fairly (85%), only a third (36%) thought the FSA had managed to deliver this for consumers.
But it’s not all down to the regulator. Banks need to do far more to regain customer’s faith in them as three quarters of people (76%) don’t think that banks can be trusted to regulate themselves.
Which? chief executive, Peter Vicary-Smith, gave evidence to the Treasury Select Committee on Wednesday 2 November, outlining his vision for the new Financial Conduct Authority (FCA).
Commenting he said: “This is a once in a generation opportunity to get this regulation right. People are crying out for a strong financial regulator that fights on their behalf.
“The FCA has the potential to stand up for consumers’ interests, but it will need to be tough and proactive.
“The new regulator must act to stop commission driven sales, tackle poor products and should hand down fines and punishments that act as a real deterrent against bad practice by the banks.”
