Consumer Redress Schemes

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Consumer Redress Schemes
  • What is a consumer redress scheme?
  • Scope of the FCA's powers in relation to consumer redress schemes
  • Widespread or regular
  • Consumers
  • Failures that can be dealt with under a consumer redress scheme
  • ‘Desirability’ of making a consumer redress scheme
  • Process for making a consumer redress scheme
  • Operation of a consumer redress scheme
  • Types of redress a firm can be required to make
  • More...

Consumer Redress Schemes

BREXIT: 11 pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects that may be impacted by these changes. Before continuing your research, see Practice Note: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime. See also FOS FAQs—Meaning of withdrawal from the EU for the FOS and its customers.

What is a consumer redress scheme?

Since 2010, under section 404 of the Financial Services and Markets Act 2000 (FSMA 2000), the Financial Conduct Authority (FCA) and its predecessor, the Financial Services Authority (FSA) have had powers to make rules requiring a firm, or firms, to establish and operate a consumer redress scheme. General guidance on consumer redress schemes, and the FCA’s powers in relation to them, is set out in Chapter 1 of the Consumer Redress Schemes sourcebook in the FCA Handbook (CONRED).

A consumer redress scheme is a set of rules under which a firm is required to take one or more of the following steps:

  1. investigate whether, on or after a specific date, the firm has failed to comply with particular requirements that are applicable to an activity

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