| answer text |
<p>The Financial Conduct Authority (FCA) is an operationally independent non-governmental
body responsible for regulating and supervising the financial services industry. The
FCA has statutory immunity from claims for damages under the Financial Services and
Markets Act 2000. The Government believes this is important in allowing the FCA to
take a robust approach to regulation and to focus its resources on pursuing its objectives
without the distraction of claims that may frustrate these efforts, or the risk that
firms can delay supervisory interventions through vexatious litigation. The FCA’s
ability to act robustly is important to millions of consumers across the country.</p><p>
</p><p>Given this statutory immunity, it is vital that those directly affected by
the FCA’s actions have an avenue to have matters put right where the FCA has failed
in carrying out its role. The Financial Services Act 2012 requires that the FCA establishes
a complaints scheme and appoints, with the Treasury’s approval, an independent person
(the Complaints Commissioner) who can investigate complaints.</p><p> </p><p>The complaints
scheme is an informal mechanism for investigating complaints and ensuring that there
is transparency around the way the FCA operates whilst not undermining the principle
of the FCA’s statutory immunity. The activities of the Complaints Commissioner are
governed by the framework set out in legislation and in the regulators’ Complaints
Scheme. The Complaints Commissioner has powers to recommend the payment of compensation
by the FCA and to require the FCA to publish its response to any recommendation that
the Complaints Commissioner makes. The Complaints Commissioner does not have powers
to compel the FCA to pay compensation. It is not a court, nor is there a right of
appeal for the FCA if the investigator makes an adverse finding against it. The FCA
remains solely accountable for the decisions it makes over how to use its funds.</p><p>
</p><p>The FCA is a self-financing organisation funded via a levy on financial services
firms, which is set by the FCA to cover its funding requirement each year following
consultation. The Government has no role in the FCA’s budgeting or the setting of
the levy. The FCA, like other public authorities, has the ability to make compensation
payments on a voluntary (‘ex gratia’) basis. The FCA publishes their approach to these
payments as part of the information on their complaints scheme.</p>
|
|
