10:10 am, April 7, 2022
Car finance companies that don’t meet basic regulatory standards face being shut down quickly.
They will be among businesses targeted by the Financial Conduct Authority, which says it will be tackling ‘problem firms’ across the finance sector via a new strategy.
The regulator is worried that the cost-of-living crisis could see households turn to lenders in greater numbers to manage their finances.
The three-year plan will see 80 new staff work to crack down more quickly on potential fraud and poor treatment of consumers.
Outcomes and performance targets will also be published to give greater accountability.
The regulator said: ‘A key focus of the strategy is shutting down problem firms which do not meet basic regulatory standards.
‘The FCA is recruiting 80 employees to work on the initiative, which will protect consumers from potential fraud, poor treatment and create a better market.’
The strategy builds on activities launched last July, when FCA boss Nikhil Rathi committed the regulator to become more innovative, assertive and adaptive.
‘Our new strategy enables the FCA to respond more quickly to the rapidly changing financial services sector,’ he said.
‘It will give us a foundation to continuously improve for the benefit of our stakeholders, and respond swiftly to economic and geopolitical developments.’
The watchdog has been attacked for slow progress at tackling troublesome firms, including the London Capital & Finance mini-bond scheme.
The FCA was heavily criticised after a report by MPs into the scandal that found it didn’t act appropriately to protect investors.
