In response to the Financial Conduct Authority and Bank of England announcing proposals for data reforms across the UK financial sector, the PFS has warned data alone will not prevent future consumer detriment.
Keith Richards, chief executive of the PFS, said: “It is vital that the regulator has the right data to inform rules, but data alone isn’t enough to prevent future consumer detriment. It is vital that data is accompanied by human insight to ensure developments in the market are thoroughly understood. Digital breadcrumbs can’t replace the knowledge gained by speaking to those who assist consumers.
“There is also a danger that a desire to streamline data collection might mean that different assets might be treated as the same, simply to create large ‘buckets’ for counting in a standardised way across the sector. This, in turn, might lead to an oversimplified view of the market.
“I am pleased the regulator will work with firms to ensure data collection is less burdensome. The regulator needs to ensure the market understands how this information will be used.”