"However, for most people it would be difficult to prove that the FCA error was the result of their loss and I’d be cautious about creating another potential feast for the CMCs whereby any current or historic error on the FCA register was then used to claim for any subsequent loss by the client on the grounds of ‘Well, if I had known X I wouldn’t have used that firm’."
He added: "Also, as the FCA is funded by providers and advisers, rather than general taxation, then any FCA compensation ultimately comes out of the pocket of providers and advisers and isn’t necessarily the same incentive for the FCA to avoid similar errors in the future as there would be if an IFA firm had made a similar mistake."
rachel.mortimer@ft.com
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