HM Treasury has today revealed the first four consumer and small business bodies to be given 'super-complainant' status for the financial services sector.
The bodies will be able to make large scale complaints to the FCA on behalf of consumers and small business across a range of issues and seek industry-wide change.
The Treasury says that the four bodies will have the power to present complaints to the FCA if they believe there are features of a financial services market that are, or could be, significantly damaging the interests of consumers and small business. 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.
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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.
Financial Secretary to the Treasury Sajid Javid said: "Super-complainants have an important role, and coupled with the strong remit of the Financial Conduct Authority to protect consumers, these measures are a significant step in our drive to tackle bad practice in the financial services sector ever more rapidly and robustly."
John Allan, national chairman, Federation of Small Businesses, said: "We are delighted to take on this important responsibility. With ongoing issues in the financial services sector, such as the mis-selling of complex financial agreements to small firms and the allegations reported in the Tomlinson report, it is vital the smallest businesses have a route to complain where they feel they have been treated unfairly."
Citizens Advice chief executive Gillian Guy said: "People can end up hugely out of pocket because of underhand tactics by some financial services. Through super-complaints we can expose deceptive practices, get authorities to act quickly and see consumers better off as a result.
"Each year Citizens Advice deals with over 1 million consumer problems, giving us in-depth insight into the issues people have with financial services."
Previous examples of super-complaints in action card surcharges, cash Isa transfers taking too long, and payment payment protection insurance.