Consumer Protection

Question 1

FSCS

Answer 1

Financial services compensation scheme

Will pay compensation to the consumer if service is unable to

Up to £5000

If the financial institution goes bankrupt FSCS will refund

Question 2

OFT

Answer 2

Office of Fair Trading
Government set up to regulate all markets

Aim to encourage fair practices and a healthy competition between financial institutions

FOA took over

Question 3

FOA

Answer 3

Financial conduct authority
Remit to regulate the actions of providers
Funded by membership fees

Key areas
Authorisation
Supervision
Enforcement

Question 4

FOS

Answer 4

Financial ombudsman service
Government organisation to represent interests of consumer in disputes with service

Funded by compulsory fees and additional fees when actions are taken against institutions