A complaints long-stop: Five options on the table

Part of consultation on advice gap

clock • 2 min read

The government and the FCA are considering five options for re-introducing a complaints long-stop for advisers.

As well as the introduction of a single long-stop, possibly of 15 years, the Treasury and Financial Conduct Authority (FCA) may introduce varied limitation periods linked to the terms of products, such as mortgages, or measures to strengthen firms' professional indemnity insurance cover for claims linked to long-term advice. Another option would be to set up a compensation fund which would pay out in the event of a justified claim older than 15 years, which all firms would contribute to. Crucially, this measure would not require the firm in question to be insolvent before a payout is tri...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot