We don’t know why the FCA doesn't seem keen to trial the idea. Maybe the problem is cost. But we are not sure this actually computes when the cost for trialling a line of revised copy in some ads should be close to zero and would, we believe, generate a very healthy return on investment if avoiding yet another big regulatory failure.
We could speculate that the real reason for not trialling the idea is that the FCA doesn’t want to create evidence trails over concerns these could help victims make the case for compensation more easily.
TTF would like to partner with IFAs to raise awareness of the idea, in the hope that our collective endeavour might result in a change of mind at the FCA, which might ultimately help avoid unnecessary consumer detriment, including tragedies, and a reduction in the Financial Services Compensation Scheme levy.
Andy Agathangelou is founder of the Transparency Task Force
FCA response:
In response to Agathangelou's comments about the FCA's failings in relation to LCF and Connaught, the FCA said: "We know that the collapse of LCF had a devastating effect on many consumers.
"There are a number of things we could have done better in our supervision of both LCF and Connaught, which is why we accepted the recommendations made to us by the independent reviewers and have acted to transform the FCA."
In response to his comments about the FCA's apparent unwillingness to adapt ScamSmart, the regulator said it was keeping an open mind: "Our ScamSmart campaign focuses on two areas to stop scams: raising consumer awareness of the key warning signs and driving use of our warning list tool.
"Over 2mn people have visited our ScamSmart website since 2014, and more than 30,000 have seen our warnings about specific unauthorised firms. Our research indicates at-risk consumers are now more likely to consider the risk of scams when investing, are more likely to be aware of the warning signs, and more likely to check with us before investing.
"While not a core objective, the campaign has also led to increased levels of reporting and better intelligence for our teams.
"We have not rejected the idea suggested by the TTF, but have said that we will consider it as part of a wider strategic review of the ScamSmart campaign."
