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
