The FSA, Office of Fair Trading (OFT) and Financial Ombudsman Service (FOS) have today proposed the creation of a new consumer protection committee.

The proposed committee would be tasked with identifying 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 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 three bodies claim specialists within their ranks would form the new committee to spot emerging risks, increasing the ability of the regulators and ombudsman service to respond “quickly and decisively”” to the threats in the market.