Financial services super-complainants named

HM Treasury

The names of the first consumer representative bodies to be given ‘super-complainant’ status for the financial services sector have been confirmed.

The four bodies will have the power to present complaints to the Financial Conduct Authority (FCA) if they believe there are features of a financial services market that are, or could be, significantly damaging the interests of consumers. For the first time business groups are being included.

The procedure for super-complaints to the FCA was brought in by the Financial Services Act 2012, to strengthen the voice of consumers of financial services.

Once a super-complainant has made a complaint to the FCA, the FCA must respond within 90 days.

The organisations given super-complainant status are:

• Which?
• Consumer Council Northern Ireland
• Citizens Advice
• The Federation of Small Businesses

Super-complainants are better placed to judge whether markets for financial services in the UK are failing consumers, who individually may lack sufficient information to judge this. This new process will therefore strengthen the voice of consumers of financial services in the UK. In the past, super-complaints about financial services could only be made to the Office of Fair Trading (OFT), which does not have the same powers as the FCA in relation to financial services. Now the FCA, after receiving a super-complaint could, if appropriate, use its own powers to tackle any underlying issues identified as a result of a super-complaint.

For example, if the FCA agrees with the super-complainant that there is a significant problem, it could restrict financial services businesses from carrying out certain activities, make new rules to require firms to do things differently, take enforcement action, or launch a consumer redress scheme to put things right for consumers who have suffered detriment. The FCA might do this on the basis of the evidence presented, or may need to carry out its own investigation first.