In a bid to comprehend the grassroots repercussions of an all-encompassing prohibition on cold calls relating to financial services and products, the UK Treasury has issued a consultation paper. This move comes as the United Kingdom gears up for a decisive stance against finance-related cold calls.
Measuring the Impact: UK Treasury’s Consultation
The UK Treasury has initiated a consultation and call for evidence to gain a comprehensive understanding of how a blanket ban on cold calls might affect businesses. This evaluation also seeks to shed light on the costs entailed in implementing such a ban.
UK Government’s Battle Against Fraud
On May 3, the UK government unveiled an ambitious strategy to combat fraud, pledging to bolster its intelligence-led policing efforts with the addition of 400 new jobs. According to estimates from the National Crime Agency, fraud inflicts a staggering annual cost of approximately $8.7 billion (£7 billion) on the nation.
Andrew Griffith, the Economic Secretary to the Treasury, emphasized the government’s unwavering commitment to tackle this issue. He voiced concern over the rising incidence of cold calls targeting financial services and products, particularly affecting vulnerable members of society.
Instances of Investor Losses and Cryptocurrency Involvement
The HM Treasury has brought to attention numerous cases where cold calls have resulted in substantial financial losses for investors. One of these instances even involved cryptocurrencies, underlining the urgency of addressing this issue. Despite previous measures and restrictions imposed by the UK government to curb cold calling, scammers often manage to exploit loopholes, evading legal consequences.
The consultation and call for evidence signal a concerted effort by the UK government to confront the persistent challenge of fraudulent cold calls. This initiative aims to gather insights, ultimately shaping policies that will provide stronger safeguards for consumers and businesses alike in the realm of financial services.
The UK government has declined an appeal to categorize and oversee cryptocurrencies as a form of gambling. Instead, they have laid out plans for HM Treasury and the Financial Conduct Authority (FCA) to collaborate with the cryptocurrency industry, ensuring that these firms are well-informed about the requisite standards for gaining approval through the FSMA gateway.
Additional guidance will be issued in the near future to provide clear and accessible standards for cryptocurrency firms operating within the United Kingdom. The government’s response underscores that pursuing such an approach could potentially run counter to globally accepted recommendations from international organizations and standard-setting bodies.