Firms should pay own claims - FSA

The suggestion forms part of the regulator’s latest discussion paper considering the issue of mis-selling and capital adequacy levels across the personal investment market. According to the FSA, the key benefit of firms mitigating the impact of mis-selling themselves would be consumers would be more likely to be compensated in full. This is, it says, because the £48,000 cap on the level of compensation the FSCS can pay can sometimes leave claims only partially fulfilled. In addition, the regulator says the detriment to FSCS levy payers – that is all FSA-regulated adviser firms – would be...