FSCS chief: We do not second guess advisers' judgements

Laura Miller
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The chief executive of the Financial Services Compensation Scheme (FSCS) has defended its role, saying it does not pay out simply because appropriate investments performed badly.

The FSCS will only compensate consumers who were mis-advised by a now defaulted firm where a court would have found that a civil liability existed on the part of a solvent firm, Mark Neale said. "We do not second guess advisers' judgements. We do not protect people from ordinary investment risk where appropriate investments perform less well than expected," he wrote in his official blog. The FSCS would not "typically" decide a civil liability existed where an investor well understood the risks they were taking in following a course of action proposed by an adviser, Neale said.   ...

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