FCA Complaints about FX, CFDs and Spreadbetting are 0.1% of Total

The UК Financial Conduct Authority (FCA) has published its half-year report about complaints against regulated firms. The number of complaints against online FX, CFDs and spreadbetting brokers is 3,471.

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This is the first time that the FCA has published such data relating to the online retail trading industry. Putting the information into context, the number of complaints is hardly a major contributor to the overall total of 3.32 million.

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The figure represents a little over 0.1 percent of the total number of complaints. A total of 97 percent of all complaints were received by 226 firms, which received more than 500 complaints each.

Granted, the number of financial firms that provide services to the wider public is much larger than the number of clients of retail brokers. But the sheer volume of information that the FCA has to process speaks volumes about the regulator’s methodical review of the industry, launched in late 2016.

FCA Regulations Still Pending

It has been almost a year since the FCA's initial announcement that it is looking into revamping the regulatory framework for retail brokers. So far the industry is still in the dark about the final outcome of the review.

The UK financial regulator announced at the beginning of the summer that it is working with the pan-European regulator ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term on a new framework. Industry executives have expressed worries about the incoming new regulations, primarily focused on clients on-boarding requirements.

Insurance and Traditional Banking Top The Ranks

The number of complaints from customers of financial institutions was led by Payment Protection Insurance (PPI) firms. A total of 1.11 million complaints were received against this sector of the myriad FCA-regulated industries.

Current accounts at traditional financial institutions were the next biggest contributor to the statistics with 309,875 complaints.

The investments sector attracted 5 percent of the total complaints, with a total of 65,643. Within this 5 percent lies the FX, CFDs and spreadbetting brokers. Further FCA stats show that 38 percent of the cases were closed within 3 days with 97 percent being received within eight weeks.

The figures are reported to the FCA by the companies themselves, as part of their Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term to the regulator.