Rachel has issued the following response to constituents who have contacted her about the duty of care for financial providers.
I note the various concerns raised to me about this issue and completely understand the importance of ensuring that vulnerable people, such as cancer sufferers, are treated properly by their bank. As you may be aware, the regulation of financial services firms is a matter for the independent Financial Conduct Authority (FCA). The FCA does already apply rules in relation to how firms should deal with their customers. These rules include requiring companies to treat their customers fairly, and to act in accordance with the best interests of their customers. A number of specific rules also include an obligation to take 'reasonable care' for certain activities.
I am aware that the FCA supervises the activities of firms against these rules and other provisions and, where necessary, can take enforcement action against firms to secure appropriate consumer protection. I understand that the FCA is of the view that its current regulatory toolkit is sufficient to enable it to fulfil its consumer protection objective.
However, the FCA has said that it will look at the issue of a 'duty of care' as part of a review of its handbook. The precise scope of any proposed duty of care is uncertain, and the impact of introducing any new obligation needs to be fully considered. Many of the FCA's current rules are based on EU legislation, and the FCA's ability to change its rules in some areas will depend on the relationship between the EU and the UK after we have left. That is why the FCA believes it makes sense to include any consideration of a 'duty of care' as part of its review of its handbook post-Brexit.
Date published:Â 16 January 2018.
As with all items in the FAQ Library, answers are subject to modification as events and circumstances change and evolve. If you would like an answer that is more specific to your circumstances, or to seek and up-to-date response, please email rachel.maclean.mp@parliament.uk.
