Changes to the Financial Services Authority's Conduct of Business rules, known as NEWCOB, could require companies - including IFAs - to offer compensation to clients on a proactive basis, claims Reynolds Porter Chamberlain.
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. ...
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