FSA redress powers could spark platform 'class actions'

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New FSA consumer redress powers could have "catastrophic" implications for advisers who have not conducted proper platforms due diligence, warns Capita Financial Software.

New FSA powers, which came into force this week, require businesses to set up collective redress schemes where the regulator sees evidence of widespread failings. But Capita Financial Software business development director William Watling says this raises the spectre of class action lawsuits being issued by clients against their advisers' choice of platform. "If a client proved they had been detrimentally impacted by an adviser's choice of platform - for example, they could have got certain funds or wrappers cheaper elsewhere - that could potentially mean any client on the same platfo...

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