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UK: Lawmakers push regulator over duty of care for banks

By  |  May 13, 2019

According to Reuters it is the legal duty for banks to act in the best interests of their customers may be needed, British lawmakers said on Monday, piling pressure on regulators to step up protection of consumers after a string of mis-selling scandals spanning decades.

British lenders have paid more than 30 billion pounds ($39.03 billion) since 2007 in redress to customers missold endowment mortgages, pensions and payment protection insurance.

Banks and other financial firms are not legally required to put customers’ interests ahead of their own.

“All retail financial services, no matter which sector of the industry they operate in, should be acting in their customers’ best interests at all times,” parliament’s Treasury Select Committee said in a report on financial inclusion.

“If the Financial Conduct Authority (FCA) is unable to enforce such behavior in firms under its current rule book and principles, the committee would support a legal duty of care,” it said.

Full Content: Reuters

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