What do I need to do now?
The main concern for most advice firms at this stage should be taking stock of your liabilities, understanding your solvency position and preparing for it.
Firms can’t escape their liability. In fact, the FCA has already been clear that firms who use compromises, such as Scheme of Arrangements, to avoid paying consumer redress could face regulatory action.
But firms can stay firmly in the driver’s seat by proactively addressing it. Ultimately, when the regulator does release the output of the consultation, the industry should be poised to offer swift and fair compensation to those former BSPS members who did receive poor advice and have suffered harm as a result.
Redress provisioning is a good place to start, which can help with your forecasting and planning. Provisioning calculations can be completed without any time-consuming data gathering, so experienced providers like TCC can turnaround cases quickly.