Explanatory note

This Order designates the Money and Mental Health Policy Institute as a designated consumer body under section 234C(2) of the Financial Services and Markets Act 2000 (“FSMA 2000”) and a designated representative body under section 68(2) of the Financial Services (Banking Reform) Act 2013 (“FSBRA 2013”).

Under section 234C(3) of FSMA 2000, the Treasury may designate a body that appears to them to represent the interests of consumers of any description (see section 234C(4) of FSMA 2000 as to the meaning of “consumer”) and satisfies the other criteria published by them for a designated consumer body. A designated consumer body may make a complaint to the Financial Conduct Authority (“FCA”) under section 234C(1) of FSMA 2000 that a feature, or combination of features, of a market in the United Kingdom for financial services or of a market in Great Britain for claims management services is, or appears to be, significantly damaging the interests of consumers.

Under section 68(3) of FSBRA 2013, the Treasury may designate a body that appears to them to represent the interests of those who use, or are likely to use, services provided by payment systems (“service-users”) of any description and satisfies the other criteria published by them for a designated representative body. A designated representative body may make a complaint to the Payment Systems Regulator (“PSR”) under section 68(1) of FSBRA 2013 that a feature, or combination of features, of a market in the United Kingdom for services provided by payment systems is, or appears to be, significantly damaging the interests of service-users.

The FCA or PSR, as the case may be, must respond to a complaint described above within 90 days after the day on which it was received, setting out how it proposes to deal with the complaint, including whether it intends to take any action and, if so, what action. The response must, among other things, state the reasons for its proposals (see section 234E of FSMA 2000 and section 69 of FSBRA 2013).

Under section 234C(1A) of FSMA 2000, a designated consumer body may not make a complaint to the FCA if it is a complaint which could be made to the PSR by a designated representative body under section 68 of FSBRA 2013.

The criteria for designation of designated consumer bodies was published by the Treasury on 12th March 2013 and is available at https://www.gov.uk/government/publications/guidance-for-bodies-seeking-designation-as-super-complainants-to-the-financial-conduct-authority. The criteria for designation of designated representative bodies was published by the Treasury on 28th September 2015 and is available at: https://www.gov.uk/government/publications/super-complainants-for-the-payment-systems-regulator. Hard copies of these criteria may be obtained by writing to the Financial Services Group, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ.

An impact assessment has not been prepared for this Order as no, or no significant, impact on the private or voluntary sectors is foreseen.