Consumers should be at the heart of Brexit negotiations says Panel

The Financial Services Consumer Panel has today published research and a position paper on the implications of Brexit for financial services consumers. The research looks at those areas where consumers could benefit from the withdrawal as well as those protections which exist at the moment and might be lost.

The Panel concluded that while the UK has worked hard in Europe to bring about some good outcomes for consumers, it has often had to compromise on its position.  If the UK takes control of its financial services legislation there is an excellent opportunity for Government and regulators to improve consumer protection regulation.

Protection could be clearer where current limits for depositor and investor compensation are set by EU Directives and fluctuate with exchange rates. There is also an opportunity to review disclosure. Too often consumers are bombarded with information which they cannot understand. Many of these disclosures are dictated by EU legislation.

Sue Lewis, Consumer Panel Chair, said: “Much of the Brexit commentary on financial services to date has focused on firms and what they want. We looked at what Brexit could mean for the financial services consumer.

It is likely there will be industry pressure for a de-regulatory agenda under the pretext of curbing Brussels “red tape”. We believe the Government should maintain valuable consumer protections, but also take the opportunity to improve on existing regulation for the benefit of consumers and firms. It should also take account of the impact on consumers throughout the negotiations on the terms of Brexit.”

The Panel advises the FCA on the interests and concerns of consumers. The Panel is independent. Its views are its own and do not represent those of the FCA.

ENDS

MEDIA ENQUIRIES:

Graham Collett (Consumer Panel): 020 7066 4748

NOTES TO EDITORS:

1. The Consumer Panel is a statutory body under the Financial Services Act 2012.  The Financial Services Authority originally established it in December 1998. The Panel advises the FCA on the interests and concerns of consumers. 
2. The Panel’s membership is drawn from a broad range of backgrounds with expertise including market research, law, financial services industry, financial inclusion, European Regulation, financial regulation, consumer advice, campaigning, communications, compliance and later-life issues. 
3. The emphasis of the Panel's work is on activities that are regulated by the FCA, although it may also look at the impact on consumers of activities outside but related to the FCA's remit. More information about the Panel's work is available on its website: www.fs-cp.org.uk or via its LinkedIn and Twitter accounts.