FCA under MP pressure to face consumer negligence claim

The FCA's immunity from civil claims dates back to 20 years ago

clock • 1 min read

Consumers should be able to chase financial watchdogs like the Financial Conduct Authority (FCA) for damages if they lose money due to the regulators’ negligence, MPs have said.

Currently the FCA has immunity from such civil damages claims. But three MPs have proposed an amendment to the Financial Services and Markets Bill to change this, the Times reports. Consumers who allege they have lost money as a result of the regulator failing to stop banned activity, would be able to make a legal claim for their losses against the watchdog, under the amendment. The suggested change, which has been brought by MPs from the Scottish National Party, will be debated this evening. If the amendment passed, questions over how damages would be paid for would need to be ans...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

IPT receipts hit £1.2bn in November

IPT receipts hit £1.2bn in November

£6.65bn for the year

Cameron Roberts
clock 20 December 2024 • 2 min read
Firms using GDPR as scapegoat for Consumer Duty failures: MorganAsh

Firms using GDPR as scapegoat for Consumer Duty failures: MorganAsh

Risking regulatory action

Cameron Roberts
clock 17 December 2024 • 2 min read
FCA releases best practices for Consumer Duty board reports

FCA releases best practices for Consumer Duty board reports

Focus on data quality

Cameron Roberts
clock 12 December 2024 • 2 min read