The FSA’s new powers to set up consumer redress schemes may give way to widespread automatic redress for platform clients, according to Capita Financial Software.
The Government recently enacted powers allowing the FSA to set up consumer redress schemes to deal with specific market failures. Capita business development director William Watling questioned how these new FSA powers will be interpreted in the platform market.
Speaking at The Platforum conference, Watling gave a hypothetical example of a client who was not told by his adviser about a variation in platform charges, who was then out of pocket as a result of his adviser’s choice of platform.
He said: “The question is if an adviser gets something wrong and a platform client comes back and complains, does that mean every other platform cli-ent who was treated in the same way would have the automatic right to redress?”