UK personal investment firms face having to hold capital to redress bad consumer advice
( November 29, 2023, 11:43 GMT | Official Statement) -- MLex Summary: Investment firms that give bad investment advice to consumers will be made to pay for redress costs under proposed measures aimed at incentivizing good advice, the UK's Financial Conduct Authority has proposed. Companies will be required to calculate their potential redress liabilities at an early stage and set aside enough capital to meet them under the new measures. Companies not holding enough will be prevented from disposing of their assets under the new rules. “The proposals seek to ensure that the polluter pays for the redress costs they generate," the FCA said. It has opened an "extensive" call for feedback until March 20 next year.Press release follows....
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