View more on these topics

Myners calls for class actions to be dropped from Bill

City minister Lord Myners (pictured) has submitted amendments to the Financial Services Bill that would scrap proposals to allow class actions against financial institutions.

In March Money Marketing revealed that the Financial Services Bill could prompt US-style class actions against advisers, opening the floodgates to unmerited claims from consumers and claim-chasers.

City law firm Beachcroft says as part of the rush to get the Bill enacted before Parliament is dissolved, Myners has put forward amendments to remove clauses 18 to 25 from the Bill.

The House of Lords’ amendments are due to be considered in the House of Commons this week and the Bill will have to be finalised by Monday, April 12 when Parliament is dissolved.

Beachcroft financial services partner Mathew Rutter says: “When the Bill was first published, we called it a dangerous cocktail.  With some of the more toxic elements removed and some equally dangerous amendments headed off, the Act is not as lethal as it might have been.

“We are delighted that pressure from the financial services sector and from firms such as Beachcroft on this issue appears to have been successful. This will come as a great relief to firms, not because they oppose the principle of redress for consumers, but because these provisions had not been fully thought through and much of the detail needed to assess them was missing. 

“However, the tide seems to be turning in favour of class actions in some form in the UK, so this is unlikely to be the last we hear of them.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com