The power to order or encourage firms to pay redress is obviously an important part of the FCA’s toolkit when it comes to remedying consumer detriment, which is central to its consumer protection objective.
Firms should be required to put things right where they have caused harm. We only have to look at the budgets that big firms allocate to proactive remediation to see that they take that obligation seriously too.
But there are some important questions about the sensible limits and regulator expectations in this context which are worthy of exploration.
We've recorded a podcast episode on this subject. Click here to listen (and subscribe with your favourite podcast app). In it we discuss the FCA’s powers to order firms to pay redress, trace the journey of their use by the FCA and pose some questions about how they might be used in future.
This episode features Alison Wilson, Linklaters’ Global Head of Dispute Resolution and a member of our contentious regulatory partner team in London and Sara Cody, counsel in Linklaters’ Financial Regulation practice.
Click here to listen and subscribe with your favourite podcast app.
We have a duty to protect consumers from harm. That includes making sure consumers have appropriate access to redress when things have already gone wrong.