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12 May 2017 / Michel Reznik
Issue: 7745 / Categories: Features , Banking , Commercial
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Injustice in financial services disputes (Pt 2)

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Mass-redress schemes do not have the capability to uphold any of the original objectives of the FCA, says Michel Reznik

  • The FCA is not an adjudication body and should not act as one.
  • It is now widely recognised that the FCA created mass-redress schemes are not fit for purpose as tools for adjudicating substantial disputes.
  • Despite this recognition, the practice of instituting and administering mass-redress schemes continues.

‘I do not think the Financial Conduct Authority (FCA) was really established or conceived to be an adjudication body. It is a regulatory or supervisory body. Now, this is not a criticism, but it has found itself in that role, and it has found itself creating—I do not know how many, but there are quite a few—bespoke adjudication processes.’

Andrew Bailey, CEO of the FCA, giving evidence to the Treasury Select Committee (TCS) on 20 July 2016. Rewind 8 years:

The financial service industry suffered a deterioration of trust and confidence in the years leading up to the financial crisis of

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MOVERS & SHAKERS

Gateley Legal—Caroline Pope & Bob Maynard

Gateley Legal—Caroline Pope & Bob Maynard

Construction team bolstered by hire of senior consultant duo

Switalskis—four appointments

Switalskis—four appointments

Firm expands residential conveyancing team with quadruple appointment

mfg Solicitors—Claire Pope

mfg Solicitors—Claire Pope

Private client team welcomes senior associatein Worcester

NEWS
What safeguards apply when trust corporations are appointed as deputy by the Court of Protection? 
Disputing parties are expected to take part in alternative dispute resolution (ADR), where this is suitable for their case. At what point, however, does refusing to participate cross the threshold of ‘unreasonable’ and attract adverse costs consequences?
When it comes to free legal advice, demand massively outweighs supply. 'Millions of people are excluded from access to justice as they don’t have anywhere to turn for free advice—or don’t know that they can ask for help,' Bhavini Bhatt, development director at the Access to Justice Foundation, writes in this week's NLJ
When an ex-couple is deciding who gets what in the divorce or civil partnership dissolution, when is it appropriate for a third party to intervene? David Burrows, NLJ columnist and solicitor advocate, considers this thorny issue in this week’s NLJ
NLJ's latest Charities Appeals Supplement has been published in this week’s issue
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