The Financial Conduct Authority (FCA) has issued a joint consultation paper – Claims management: how we propose to regulate claims management companies (CP18/15) (the Consultation) with the Financial Ombudsman Service (FOS) setting out draft proposals on how the FCA intends to authorise and regulate claims management companies (CMCs).
This Consultation will be of interest to:
- CMC’s operating in England, Scotland and Wales.
- Organisations that are not CMCs but have the potential to be affected by them
The High Court has refused an application for judicial review of the FOS by three IFAs who argued that the FOS ought to have stayed its determination of complaints against them by investors in relation to the misselling of Keydata products pending the resolution of litigation (brought by the FSCS) in relation to the same product and issues but in respect of other IFAs and other investors. Continue reading
In R (on the application of Bluefin Insurance Services Ltd) v Financial Ombudsman Service Ltd, the Administrative Court ruled on a judicial review that the Financial Ombudsman Service (“FOS”) had no jurisdiction to entertain a company director’s complaint against an insurance broker who had obtained a directors’ and officers’ (“D&O”) insurance policy in respect of the company. Wilkie J held that the director was not a “consumer” for the purposes of the DISP rules: he had incurred the liability in his capacity as a director and this was in the course of his trade, business or profession. Continue reading
We have published our latest Banking Litigation Update, summarising some of the more important cases and developments affecting UK financial institutions over the first half of 2014, including: Continue reading
The Court of Appeal has handed down an important judgment holding that complainants who had accepted a Financial Ombudsman Service (“FOS”) determination were barred from bringing court proceedings in relation to the same cause of action under the legal principle of res judicata. In doing so, the Court of Appeal overruled a High Court decision that complainants to the FOS would be able to accept a determination awarding them the statutory maximum award (now £150,000) and then subsequently claim for damages above that amount through the courts.
The Court of Appeal has granted a firm permission to appeal a recent High Court decision which held that complainants who accept an award of compensation pursuant to a Financial Ombudsman Service (FOS) determination may subsequently seek to “top up” that award through court action (Clark v In Focus Asset Management & Tax Solutions Ltd  EWHC 3669 (QB) – see our e-bulletin on the High Court decision). Continue reading
The UK High Court has decided that a party who accepts a FOS determination awarding them the statutory maximum (now £150,000) can thereafter pursue claim for damages above that amount through the courts. The Court concluded the doctrine of merger does not apply to FOS determinations. This ruling is in direct conflict with a previous High Court decision which had held that, once a consumer had accepted a FOS determination, its cause of action merged with that determination and could not be pursued further through the courts. Continue reading