FSA may force advisers to fully compensate unhappy clients

Reynolds Porter Chamberlain (RPC) said the decision, outlined in an FSA note to Parliament, "reverses the basic principle of UK law". Currently, a firm can decline to pay compensation if they are satisfied a client's losses were beyond their control - known as the law of "causation". Simon Laird, a partner at RPC, said advisers would be "very disappointed" if they were forced to fully compensate customers for losses that may be unrelated to a minor technical breach of the rules - and that the decision "flies in the face of common sense". "Effectively these changes to the law could ...