Consumers: Protection

Treasury written question – answered on 8th September 2014.

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Photo of Stella Creasy Stella Creasy Shadow Minister (Business, Innovation and Skills)

To ask the Chancellor of the Exchequer pursuant to the answer of 9 July 2014, Official Report, column 355W, on consumers: protection, what assessment he has made of the effect on consumers of the limits on the Financial Conduct Authority's powers to issue fines in cases which involve (a) breaches before April 2014 and (b) investigations begun by other agencies before April 2014.

Photo of Andrea Leadsom Andrea Leadsom The Economic Secretary to the Treasury

The Government has considerably strengthened the FCA’s powers in relation to misconduct which occurs under the new regulatory regime. For example, the FCA has the ability to impose unlimited fines for breaches of regulatory requirements that take place after 1 April 2014.

Additionally, the Government has ensured that the FCA has inherited the OFT’s powers (both criminal and regulatory) in relation to misconduct which occurred before 1 April 2014. This means that the FCA can apply the sanctions available to the OFT under the previous regulatory regime.

The FCA also has the ability to take into account evidence of previous misconduct when considering a firm’s fitness to hold FCA permission.

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