Regulators Shelf £10k Compensation Cap

Financial services regulators such as the Financial Conduct Authority, the Prudential Regulatory Authority and the Pensions Regulator have agreed collectively to scrap the proposed £10,000 compensation cap that they can pay if they are proved to be negligent and cause financial loss.  This is all part of a new system to make regulators more accountable for their actions and negligence.

This will only apply to complaints made after 1^st November 2023.

Comment

It has always been difficult to make a complaint against a Statutory body or to HM services.  As HMRC once said to us when we made a compliant to the Parliamentary Ombudsman over 20 years ago after HMRC caused us considerable stress and financial loss of 3 days completely shut down due to their errors, the response from the Parliamentary Ombudsman was “you cannot sue Her Majesty”.

It has been much the same with Statutory bodies such as the FCA that are exempt from legal action despite that fact that they have caused £millions in financial losses over the years.  In addition, it is they that set compensation limits up to £350,000 for financial services firm negligence yet are immune for their own errors.