Polluter pays: Three things for and against FCA plans

'Regulator is to be congratulated for grasping the nettle'

clock • 5 min read

Jonathan Newell gives a qualified welcome to the FCA’s ‘polluter pays’ redress proposals...

The Financial Conduct Authority's (FCA) recent announcement of a consultation on capital deduction for redress is a welcome move towards resolving the perennial problem of the Financial Services Compensation Scheme (FSCS) being overstretched paying out compensation emanating from collapsed poorly-managed or fraudulent advisory firms. For too long, well-run advice businesses have had to pay increasing FSCS levies to essentially bail out the end clients adversely affected by shut-down firms. It's well overdue to sort this out, and the regulator is to be congratulated for grasping the nettl...

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

How considering vegetable peelers can inform your product design

How considering vegetable peelers can inform your product design

FCA released two reports to mark the third birthday of Consumer Duty

Alison Gay
clock 31 July 2026 • 4 min read
Andy Wealthall: Is there still a place for annual suitability reviews?

Andy Wealthall: Is there still a place for annual suitability reviews?

'We shouldn't solve one problem by creating another'

Andy Wealthall
clock 30 July 2026 • 4 min read
Why the smartest advisory firms are getting ahead of the FCA on non-financial misconduct

Why the smartest advisory firms are getting ahead of the FCA on non-financial misconduct

'September is a starting point, not the finish line'

Gemma McCall
clock 29 July 2026 • 5 min read