FSA customer redress powers come into effect

Part of April's Financial Services Act 2010, the new power was activated today through a Commencement Order laid in Parliament by the Treasury. It will be used in instances where the FSA sees evidence of widespread or regular failings at firms leading to customer detriment. The power is designed to deal with issues affecting a number of firms, rather than individual companies, and a cost-benefit analysis and consultation will have to be undertaken each time the regulator wants to establish a redress scheme. Sally Dewar, the FSA's managing director of risk, says: "This is an importa...