The Financial Conduct Authority’s aim is to make financial markets work well so that consumers get a fair deal.  They do this through protecting consumers, enhancing market integrity and promoting competition.  The FCA consults on its proposals, to allow stakeholders to have their say.  You can find all open consultations on their website.

Announced this week is a consultation on plans to ban the way in which some car retailers, and other brokers in the motor finance sector, receive commission.   Some brokers receive commission which is linked to the interest rate that customers pay, which creates an incentive for brokers to act against customers’ interests.  Preventing the use of this type of commission would save customers an estimated £165 million a year.  Open for comments until 15 January 2020 you can view the motor finance consultation document online.

Closing soon is another consultation relating to conflicts of interest, this time the FCA is looking at pension advisers and the transfer of pensions from defined benefit (DB) schemes to defined contribution (DC) schemes. The consultation proposes to ban ‘contingent charging’ where the adviser is only remunerated if a transfer goes ahead.  The FCA is concerned that too many advisers are delivering poor advice and many transfers will not have been in the consumers’ best interests.  More detail about the pension transfer consultation can be found on the FCA website, including how to respond – closing date 30 October.