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 ...
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