Managing my financial journey
Managing my financial journey

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

Free course

Managing my financial journey

4.3 The protection safety nets

In this animation you will examine the various features of regulation that provide protection to consumers in the financial market place. The focus is on the protection afforded to consumers before, during and after the sale of financial products.

Download this video clip.Video player: ou_futurelearn_managing_my_journey_vid_1110.mp4
Skip transcript

Transcript

MARTIN UPTON
The protection of consumers in the financial market place has several facets which we can liken to a series of safety nets.
As we have already seen the rules governing the sale of regulated products - particularly suitability reports and cooling-off periods are the front line of consumer protection.
But there are other aspects to protection that we will examine in the coming sections. Consumers are protected by rules aimed at preventing firms from making misleading statements about products.
When customers place their funds with a financial firm there are rules governing the segregation of their assets from those of the financial firm - which is important if the firm gets into financial problems. Additionally the Data Protection Act requires financial firms to adopt procedures regarding the holding and use of personal data to protect the rights of consumers.
If there are grounds for making complaints then consumers may be able to make representations to the Financial Ombudsman Service (or FOS)
And if a financial firm defaults customers' money is protected - subject to limits and the specific product involved - by the Financial Services Compensation Scheme (or FSCS)
And at all points before, during or after dealings in financial products, guidance and information is available to consumers from bodies like the Money Advice Service, Pension wise and Citizens Advice.
End transcript
 
Interactive feature not available in single page view (see it in standard view).
OUFL_27

Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to University-level study, we offer two introductory routes to our qualifications. You could either choose to start with an Access module, or a module which allows you to count your previous learning towards an Open University qualification. Read our guide on Where to take your learning next for more information.

Not ready for formal University study? Then browse over 1000 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371