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You are viewing the version of the document as on 2023-07-04.

CONRED 4.5 Taking steps by or on behalf of FCA

CONRED 4.5.1G
  1. (1)

    1If the conditions in (2) are satisfied, the FCA may:

    1. (a)

      instead of the firm, take any of the steps at CONRED 4.2 to CONRED 4.4; or

    2. (b)

      appoint one or more competent persons to take any of the steps at CONRED 4.2 to CONRED 4.4.

  2. (2)

    The conditions are:

    1. (a)

      there has been a material failure by the firm to take any of the actions required under this chapter; or

    2. (b)

      the firm has informed the FCA that it is unable or unwilling to take any of the actions required under this chapter because:

      1. (i)

        to do so would be in breach of a condition of the firm’s professional indemnity insurance policy; and

      2. (ii)

        the firm’s insurer has not elected to take such actions on its behalf.

  3. (3)

    The FCA must give a firm prior notice before taking any of the steps under this rule.

CONRED 4.5.2R

1If the FCA gives notice in the circumstances described in CONRED 4.5.1R, the firm must:

  1. (1)

    not carry out (or, as the case may be, continue to carry out) any of the steps to be taken by the FCA or the competent person, unless so directed in writing by the FCA or competent person (as applicable); and

  2. (2)

    render all reasonable assistance to the FCA or competent person (but any assistance, the rendering of which would invalidate the firm’s professional indemnity insurance policy, is not reasonable for the purposes of this rule).

CONRED 4.5.3G

1A firm is expected to make reasonable efforts to obtain the consent of its professional indemnity insurer to take the relevant steps in relation to this redress scheme, in line with its obligations under Principle 11 (Relations with regulators).

CONRED 4.5.4G

1Where permitted under the firm’s professional indemnity insurance policy, a firm’s insurer can take any of the steps at CONRED 4.2 to CONRED 4.4 acting on the firm’s behalf.

CONRED 4.5.5R
  1. (1)

    1If, where the FCA or a competent person takes any steps in accordance with CONRED 4.5.1R, the FCA proposes to make a determination of:

    1. (a)

      whether a failure by a firm has caused loss to a consumer; and

    2. (b)

      what the provisional redress sum should be in respect of any failure,

    the FCA must give the firm a warning notice that specifies the proposed determination.

  2. (2)

    The provisional redress sum in (1) must be the amount that would be owed to a consumer if a redress determination were made pursuant to CONRED 4.4.2R on the same date as the warning notice.

CONRED 4.5.6G
  1. (1)

    1If the FCA decides to make a determination of the matters in CONRED 4.5.5R, the FCA must give a firm a decision notice specifying the determination.

  2. (2)

    If the FCA decides to make such a determination, a firm may refer the matter to the Tribunal.

CONRED 4.5.7G

1Part XXVI of the Act (including the provisions as to final notices) applies in respect of notices given under CONRED 4.5.5R and CONRED 4.5.6R.

CONRED 4.5.8G

1Where, instead of a firm, the FCA or, where applicable, a competent person:

  1. (1)

    communicates with a consumer:

    1. (a)

      they will do so in their own name, making clear in the case of a competent person its authority from the FCA to do so; and

    2. (b)

      they may make such amendments to the letters in the forms set out in the Annexes in CONRED 4 as are appropriate to reflect that they are being sent in the name of the FCA or competent person; or

  2. (2)

    makes the redress determination in the letter at CONRED 4 Annex 13R, the FCA or competent person will:

    1. (a)

      update the provisional redress sum no later than 14 days after the issue of a final notice in respect of the FCA’s decision to make a determination of the matters in CONRED 4.5.5(1)R to reflect the amount that is owed at the time such redress determination is made; and

    2. (b)

      send the firm a copy of the consumer’s response to the redress determination.

CONRED 4.5.9G

1A fee is payable by the firm (or person falling within CONRED 4.1.5(1)R in any case where the FCA exercises its powers under CONRED 4.5.1R: see the table at FEES 3.2.7R.

CONRED 4.5.10G

1The completion of steps in CONRED 4.2 to CONRED 4.4 by, or on behalf of, the FCA does not affect the ability of the Financial Ombudsman Service to consider a complaint, in particular where the firm has not sent a redress determination in accordance with the time limits specified under the consumer redress scheme created by this chapter.