Recommendation 24

HM Government Acknowledged

The Financial Conduct Authority (FCA) is taking action to increase consumer awareness of investment scams and the common tactics fraudsters use. It has stressed the importance of rejecting unsolicited offers, getting impartial advice and checking the FCA Warning List before making an investment. The FCA’s ‘Warning List’ can be checked in order to establish whether an investment or pension opportunity is known by the FCA to be a scam and if a firm is known by the FCA to be operating without permission or running scams. More broadly, the financial services regulators, the FCA and the Financial Ombudsman Service (FOS), are governed by the framework of duties set out in legislation by Parliament. It would be unlawful for them to act outside of this framework in order to further vested interests. The decisions of both organisations can be subject to judicial review and both organisations must maintain arrangements for the investigation of complaints. The Pensions Regulator (TPR) has a two-stage formal complaints process, the details of which can be found on their website. Victims can also ask the Parliamentary Ombudsman to investigate complaints further after the TPR complaints procedure has finished. TPR also upholds the standards laid out in the Code of Practice for Victims of Crime, under which those who have suffered a loss through a pension-related crime can complain if they believe their rights have not been met. HM Treasury has no statutory role in considering complaints about the level of service provided by the regulators. If a consumer wishes to make a complaint about the regulators, they should contact the regulators directly in the first instance. Responses to the Committee’s Fifth Report of Session 2019–21 17 The Financial Services Act 2012 also requires that the regulators must appoint an Independent Complaints Commissioner, on terms and conditions reasonably designed to ensure independence from the regulators, to consider complaints about the way the regulators have carried out, or failed to carry out, their role. The Commissioner has powers to recommend the payment of compensation and to require the regulators to publish their response to any recommendation, for example where it decides not to pay compensation. For complaints about the way in which the FOS has carried out or failed to carry out their role, consumers are able to contact the Independent Assessor. If the Independent Assessor judges that the service provided by the Ombudsman has not met the appropriate standards, they can recommend that the Ombudsman Service apologise, or should pay compensation for any damage, distress or inconvenience caused. The regulators have statutory immunity from liability for damages, but this does not extend to acts or omissions shown to be in bad faith, nor does it extend to damages awarded in respect of a breach of the Human Rights Act. The Financial Services and Markets Act 2000 contains express channels to appeal to the Upper Tribunal against disciplinary and supervisory decisions made by the regulators and the regulators are also subject to judicial review in respect of their general functions, such as making rules. In all these cases costs can be awarded against the regulators. The Government’s position is that the current arrangements for the investigation of complaints against the regulators are appropriate.