Financial Conduct Authority warns firms against limiting liabilities

Consultation open until 1 March

The Financial Conduct Authority has warned firms they should not be using company and insolvency law to minimise their liabilities.

In proposed guidance, published today (25 January), the regulator said it had seen an increase in firms developing ‘Schemes of Arrangements', particularly when it comes to redress liabilities and that firms have requested a ‘letter of non-objection' in relation to these proposals. The regulator, however, said it "would be unlikely to ever issue" such a letter and believes firms should be providing the best possible outcome for customers, which would be "providing the maximum amount of funding possible to meet compensation claims by customers". The FCA said it would reject proposals in...