Polluter pays: Three things for and against FCA plans

'Regulator is to be congratulated for grasping the nettle'

clock • 5 min read

Jonathan Newell gives a qualified welcome to the FCA’s ‘polluter pays’ redress proposals...

The Financial Conduct Authority's (FCA) recent announcement of a consultation on capital deduction for redress is a welcome move towards resolving the perennial problem of the Financial Services Compensation Scheme (FSCS) being overstretched paying out compensation emanating from collapsed poorly-managed or fraudulent advisory firms. For too long, well-run advice businesses have had to pay increasing FSCS levies to essentially bail out the end clients adversely affected by shut-down firms. It's well overdue to sort this out, and the regulator is to be congratulated for grasping the nettl...

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