MiFID could lead to 'proactive' compensation

The law firm says the FSA is using the Markets in Financial Instruments Directive (MiFID), which comes into force on 1 November, as an excuse to rewrite both the COB Dispute Resolution Rules which cover all financial services business, even though many – such as IFAs and insurance brokers – are not covered by the EU Directive. Jonathan Davies, partner at RPC, says the new dispute resolution rules could see many companies being required to offer compensation on a proactive basis once they become aware of a recurring problem, while at the moment they can wait until a customer complains. H...