The UK Financial Conduct Authority (FCA) is concerned that financial services don't always work well for consumers and, in fact, it observed a number of common practices by some firms that cause consumer harm. These include presenting information in a way that exploits consumers’ behavioral biases, selling products or services that are not fit for purpose, or providing poor customer support.
These sorts of actions undermine trust in the industry, the FCA said, noting that its consumer survey in 2020 found that only 10% “strongly agreed” that they had confidence in the financial services industry, and that just 35% believed that industry firms are honest and transparent. New plans will fundamentally shift the mindset of firms.
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