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FSA board ‘fully endorses’ Arch cru scheme decision

FSA 480

The FSA insists the board “fully endorses” the regulator’s decision to go ahead with a revised version of its Arch cru consumer redress scheme, despite earlier concerns about the cost pressures the scheme would place on advisers and the Financial Services Compensation Scheme.

The regulator published a policy statement on its Arch cru consumer redress scheme this week. Under the amended scheme, firms have to write to clients who were recommended Arch cru and clients have to opt in to have the advice reviewed.

Minutes from the FSA’s board meeting in April, ahead of the consultation being published, revealed the board’s concerns about cost pressures.

The board said the FSA needed to bring a “convincing case” for the scheme to go ahead.

Speaking to Money Marketing, FSA head of investment intermediaries Linda Woodall says: “It was not an easy decision. The fundamental questions were has the legal test been met, do the benefits outweigh the costs, and comparing this to pursuing individual cases through courts, is this a more efficient and effective way to get money to investors who are due redress. This decision is one the FSA board fully endorses but it was obviously a complex issue and one that required a significant amount of discussion.”

Association of Professional Financial Advisers policy director Chris Hannant says: “We are still not satisfied the regulator has made the case for a consumer redress scheme.”


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There is one comment at the moment, we would love to hear your opinion too.

  1. Given that the FSA and its board are one and the same thing, how can we be at all surprised that the latter “fully endorses” the decision of the latter to press ahead with this redress scheme, regardless of anything anyone may have to say about it?

    Even if there’d been any sort of consultation, the FSA would, as usual, have taken not the slightest bit of notice of any responses to it, let alone published those responses for all to see and to debate in open forum. It would merely have claimed to have “taken on board” those responses but gone ahead anyway.

    How was the decision difficult for the FSA when all it has to announce is: This is what we think so this is what’s going to happen and anyone who refuses to go along with it can start preparing for asn alternantive career. It’s a bloody joke.

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