The UK’s Financial Conduct Authority (FCA) has released the second annual perimeter report, which states big tech companies like Google should do more to protect consumers.
The report determines which activities require authorisation and what level of protection consumers should expect from financial services. This perimeter is decided by the government and parliament through legislation.
This new report includes the issuing of a temporary product intervention in January to ban the mass-marketing of speculative illiquid debt securities and preference shares to retail investors for 12 months. The FCA is in the consulting phase on proposals to make this a permanent ban.
In the report, the FCA also states that big firms like Google should do more to protect their consumers.
It also sets out areas where progress has been made or changes are needed to help consumers during the pandemic.
This report is the basis of a formal discussion with the economic secretary to the treasury later this year.
FCA interim chief executive Christopher Woolard said, “Our annual perimeter report is key to providing clarity on our approach, contributing to the public debate around perimeter issues, highlighting where others have a part to play and promoting transparency around our work with the Government.
“These are challenging times for firms, consumers and the wider economy. The coronavirus crisis may exacerbate existing perimeter issues and encourage unlawful activity. We are focused on providing assistance to those consumers who need it. We continue to take action to protect consumers from losing money they can’t afford on high risk investments and falling victim to scams.”
The FCA launched the first annual perimeter report in 2019, which looked at providing greater clarity to stakeholders on the FCA’s role and set out specific issues that had arisen.
