FCA takes more time to review 'polluter pays' redress feedback

Intends to publish response later this year

Isabel Baxter
clock • 3 min read

The Financial Conduct Authority (FCA) is taking extra time to further consider the feedback it has received on its proposals to shake-up investment advice compensation rules.

Its proposed Capital deduction for redress: personal investment firms consultation will see firms set aside capital under a "polluter pays" framework. In November 2023, the FCA released a consultation on its plans alongside a ‘Dear CEO' letter on the issue. This consultation could result in firms being required to set aside capital so that they can cover compensation costs, "ensuring the polluter pays when consumers are harmed".  The plans would mean personal investment firms - otherwise known as investment advisers - would need to calculate their potential redress liabilities "at ...

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 sets out plans to simplify complaints regime

FCA sets out plans to simplify complaints regime

Including requirement for firms to report complaints involving vulnerable clients

Isabel Baxter
clock 04 December 2025 • 2 min read
FCA looks to boost transparency of ESG ratings providers

FCA looks to boost transparency of ESG ratings providers

Regulator opens consultation

Michael Nelson
clock 01 December 2025 • 2 min read
Regulators urged to hold pension transfer 'bad actors' to account

Regulators urged to hold pension transfer 'bad actors' to account

Advisers report ‘widespread and sometimes extreme delays’

Sahar Nazir
clock 24 November 2025 • 5 min read