FCA to force firms to treat customers better

Money Box

BBC

Business

4.2 • 804 Ratings

🗓️ 22 May 2021

⏱️ 34 minutes

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Summary

Financial firms are being told they will be forced to treat their customers better under plans by the regulator for a new “Consumer Duty”. It will set down a higher level of consumer protection that firms will have to follow. The consultation on the plans has just been published and the new rules should be in force by the middle of next year. Paul Lewis talks to Nisha Arora, Director of Consumer and Retail Policy at the Financial Conduct Authority.

Money Box continues to get complaints from customers who have current accounts with the online firm Pockit. They tell us that the money in their accounts - often thousands of pounds - has been frozen, sometimes for months. Virraj Jatania, Pockit’s founder and Chief Executive, provides some answers.

Every month millions of people in the UK use the social media platform TikTok. It specialises in short videos normally made by individuals on their mobile phone and edited to music. The videos cover everything from comedy to dance to money. But we hear about concerns that these videos encourage young people to get into bad money habits.

Presenter: Paul Lewis Researcher: Sowda Ali Reporter: Dan Whitworth Production co-ordinator: Janet Staples Producer: Ben Carter Editor: Alex Lewis

Transcript

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0:00.0	You're about to listen to a BBC podcast, but this is about something else you might enjoy.
0:05.4	My name's Katie Lecky and I'm an assistant commissioner for on demand music on BBC Sounds.
0:10.8	The BBC has an incredible musical heritage and culture and as a music lover, I love being part of that.
0:17.5	With music on sounds, we offer collections and mixes for everything, from workouts to
0:22.4	helping you nod off, boogie in your kitchen, or even just a moment of calm. And they're all put
0:28.3	together by people who know their stuff. So if you want some expertly curated music in your life,
0:35.0	check out BBC Sounds.
0:41.2	BBC Sounds, music, radio, podcasts.
0:44.2	Hello and welcome to this Moneybox podcast.
0:51.0	The boss of the prepaid card app Pocket admits that more than a thousand of its current accounts have been frozen.
0:56.4	The young people who are squeezing financial advice into videos that last less than a minute,
0:58.3	is that good or dangerous?
1:05.9	And traffic lights, PCR tests and quarantine, the extra costs and hassle of foreign travel.
1:11.5	But first, financial firms are being told they'll be forced to treat their customers better under plans by the regulator for a new consumer duty.
1:16.0	It'll set down what it calls a higher level of consumer protection in retail financial markets
1:21.6	and firms will be bound by it.
1:24.2	The consultation on the plan has just been published and the new rules should be enforced by the
1:28.7	middle of next year. Live now to Nisha Aurora, the Director of Consumer and Retail Policy at the
1:35.0	Financial Conduct Authority. Nisha Aurora, why do we need a new consumer duty?
1:41.1	Morning, Paul. So the point of this consumer duty is to introduce these, say, rules that
1:46.3	firms will need to comply with and create higher standards in financial services markets and enable
1:52.2	customers to make good decisions. The reason we need this now is that whilst we're seeing
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