Part XXVIII Miscellaneous (ss [404-416)
Part XXVIII Miscellaneous (ss [404-416)

[404 Consumer redress schemes]

[(1)     This section applies if—

(a)     it appears to the [FCA] that there may have been a widespread or regular failure by relevant firms to comply with requirements applicable to the carrying on by them of any activity;

(b)     it appears to it that, as a result, consumers have suffered (or may suffer) loss or damage in respect of which, if they brought legal proceedings, a remedy or relief would be available in the proceedings; and

(c)     it considers that it is desirable to make rules for the purpose of securing that redress is made to the consumers in respect of the failure (having regard to other ways in which consumers may obtain redress).

(2)     “Relevant firms” means—

(a)     authorised persons; . . .

(b)     payment service providers[; or

(c)     electronic money issuers].

(3)     The [FCA] may make rules requiring each relevant firm (or each relevant firm of a specified description) which has carried on the activity on or after the specified date to establish and operate a consumer redress scheme.

(4)     A “consumer redress scheme” is a scheme under which the firm is required to take one or more of the following steps in relation to the activity.

(5)     The firm must first investigate whether, on or after the specified date, it has failed to comply with the requirements mentioned in subsection (1)(a) that are applicable to the carrying on by it of the activity.