The committee would identify any risks with the potential to turn into widespread problems, and determine fast and effective ways of dealing with them, whether through regulatory action or consumer complaints.

The work of the committee, set out in today’s discussion paper, would update the “wider implications process,” which is often triggered once a problem has already had an impact on both the industry and consumers.

The Discussion Paper considers the current position for redress and complaints handling in the financial services industry and any potential changes. It is a joint publication by the Financial Services Authority, the Office of Fair Trading, and the Financial Ombudsman Service.

Sheila Nicoll, FSA director of conduct policy said:

“Complaints handling is a priority area within the FSA’s intensive supervision agenda. The co-ordination committee is a clear indication of the intention, and will, of the authorities to work even more closely together to improve the experience of consumers, and to avoid problems happening in the first place.”