Article Image 26240

What have regulators done to help consumers?

In the wake of the financial crisis, many regulatory bodies have sprung up. The goal? To find out how risky banks are, maintain market confidence and reduce financial crime. Crucially, however, is the role they play in consumer protection. Most recently, the Bank of England’s (BoE) internal watchdog has been called into question, mainly regarding its lack of activity. Here’s a breakdown on what regulatory bodies around the world have been doing to help consumers.

The UK

The BoE’s Independent Evaluation Office (IEO) was set up in November 2014, to build public trust in the Bank. While little has been done on this front, it has, however, helped the Bank redraft its annual report and supported a review of monetary policy. Nevertheless, the UK’s Financial Conduct Authority (FCA) made some big decisions last year. The FCA gave RBS, Ulster Bank and NatWest a £42m fine for IT failures which stopped customers from accessing bank services. This has really set an example to other banks, proving the importance of maintaining services to consumers.

The US

The FCA’s equivalent in the US is the Consumer Financial Protection Bureau (CFPB). It aims to educate and empower consumers as well as enforce rules and regulations. Most recently, the CFPB aided the Justice Department in its investigations against mortgage lender, Provident, for its alleged discriminatory lending practices towards African-American and Hispanic customers. A settlement of $9m in compensation will soon be placed in a fund for the victims and should help ensure fair lending practices in the future. The latter, of course, will need to be rigorously policed.

Asia

Looking to China, the National Development and Reform Committee recently launched an investigation on potential monopolies in the shipping industry. This matters because if such monopoly behaviour does exist, this could potentially drive up consumer prices unfairly. In 2012, Japan’s financial regulator, the Fair Trade Commission, led a similar investigation which resulted in a huge 13.1bn yen ($106m) fine for some key players in the industry.

To find out more about the latest news in the financial markets, take a look at our blogs. If you’re concerned about how your international money transfer is regulated, compare safety features with our trusted comparison tool.


 

Comparison tool

R.H

I am extremely impressed with the Investec currency exchange team service levels, they are fast and efficient. Excellent trading rates and straight talking, what more do you need.

Fiona Aitkin

I've found your comparisons really useful and frequently refresh the page as we're about to pay a deposit on a house in Turkey. Pretty good.
washington hotel

A GUIDE TO INVESTING IN AN INTERNATIONAL HOTEL BUSINESS

As an overseas investor, regardless of the method of hotel management you will decide to opt for, you will be exposed to what are often volatile exchange rates, whether paying for your investment, running costs and overseas supplies and hotel management employees. Read the definitive guide.

Paying overseas suppliers in their own foreign currency

PAYING OVERSEAS SUPPLIERS FOR GOODS AND SERVICES

When paying overseas suppliers on a regular basis, currency conversion costs as well as fees when using your bank all add up. The Money Cloud saves you money by introducing you to specialist foreign exchange companies when conducting overseas business purchases and expenses.

Market Insights

Sign up for our newsletter.

Thank You for subscribing to our Newsletter

You have successfully signed up to our Newsletter