FCA updates on 'polluter pays' and redress guidance

Measures aim to protect consumers and ensure firms meet regulatory obligations

Sahar Nazir
clock • 2 min read

The Financial Conduct Authority (FCA) yesterday (14 January) published updated guidance for firms on managing redress liabilities and tackling "polluter behaviour" to protect consumers, maintain trust in the financial system, and ensure firms meet regulatory obligations.

Under Principle 4 (Financial Prudence), firms are expected to maintain adequate financial resources to meet redress liabilities. This principle extends to firms subject to prudential standards, reinforcing that financial health must align with regulatory requirements. Polluter behaviour – actions by firms leaving behind unresolved liabilities – has caused consumer harm and strained the financial services market, according to the watchdog. In cases where firms genuinely cannot meet liabilities, they are urged to provide evidence-backed reasons for their actions and decisions. The FCA s...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA considers softer SDR rules for index-tracking funds

FCA considers softer SDR rules for index-tracking funds

Amid ‘challenging’ requirements

Cristian Angeloni
clock 16 September 2025 • 1 min read
FCA: Consumer investment product disclosure system 'not working'

FCA: Consumer investment product disclosure system 'not working'

FCA rules are expected in late 2025

Michael Nelson
clock 11 September 2025 • 2 min read
FCA social media crackdown: Three 'finfluencers' make first court appearance

FCA social media crackdown: Three 'finfluencers' make first court appearance

Case brought as part of FCA-led global crackdown on illegal promotions

Jenna Brown
clock 10 September 2025 • 2 min read