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Home > Regulation > UK Regulation

MPs say firms must tell clients about the FSCS

Almost four out of five MPs believe financial service firms should do more to inform customers about the FSCS, a survey has found.

By Kevin White | Published May 14, 2012 | comments

A Com Res poll of 154 MPs held between February and March, revealed that 77 per cent believed financial services firms should have to display information about the FSCS prominently in branch or at the point of sale.

The survey, which was weighted to reflect the political make-up of the house of commons, also found that 75 per cent of MPs agreed the compensation scheme was vital to ensure public confidence in financial services firms, against 4 per cent, who disagreed or strongly disagreed with the statement.

Elsewhere, 78 per cent agreed that improving awareness of the FSCS would increase consumer confidence and trust in financial services, in addition to contributing to increased financial stability, while 81 per cent agreed there was a lack of awareness of the protection offered by the industry funded scheme.

FSCS chief executive Mark Neale said: “The FSCS makes an important contribution to consumer confidence and MPs recognise the important work we do to protect consumers. MPs also agree the industry needs to do more to make people aware of the protection the scheme provides, particularly in branch and at the point of sale.

“We are working with the industry on the next phase of our consumer awareness programme, including providing clear sign posting of FSCS in banks, building societies and credit unions. We hope the industry will embrace this work which will benefit consumers and firms alike.”

The poll’s publication came in the wake of claims by Alun Cairns MP - the chairman of an all-party parliamentary group looking into compensation for victims of the Arch Cru mis-selling scandal, who said the proposed £100m FSA redress scheme was “too complex” and needed to be looked at in further detail.

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