Section 90 of Financial Services and Markets Act 2000
Share
Section 90 of the Financial Services and Markets Act 2000 provides a mechanism for compensation in cases where a regulated firm has been found to have breached certain obligations and caused financial loss to a consumer. The compensation provisions under Section 90 aim to protect consumers and provide them with a means of redress for financial harm suffered due to the actions or misconduct of a regulated firm.
Under Section 90 of the Act, the Financial Services Compensation Scheme (FSCS) is established as a statutory compensation scheme. The FSCS is designed to provide protection and compensation to consumers who have incurred losses in relation to specific financial products and services.
Eligibility criteria: The FSCS determines eligibility for compensation based on certain criteria. Generally, individuals and small businesses (with certain limitations) that have dealt with a regulated firm are eligible for compensation under the scheme. The FSCS provides coverage for various financial products, such as deposits, insurance policies, investment products, and certain types of advice.
Compensation limits: The FSCS sets compensation limits that determine the maximum amount that can be paid out to a consumer for a specific claim. These limits vary depending on the type of financial product or service and are subject to periodic review and adjustment.
Insolvency of regulated firms: The compensation provisions under Section 90 also come into play when a regulated firm becomes insolvent and is unable to meet its financial obligations to consumers. In such cases, the FSCS may step in to provide compensation to eligible consumers.
Funding: The FSCS is funded through levies imposed on authorised firms in the financial services sector. Regulated firms are required to contribute to the compensation fund based on their size and the risks they pose to consumers.
The availability and extent of compensation under Section 90 of the Act may be subject to certain conditions, limitations, and exclusions. The specific details and processes regarding compensation claims, eligibility, and the calculation of compensation amounts are governed by the rules and regulations established by the FSCS.
Under Section 90 of the Act, the Financial Services Compensation Scheme (FSCS) is established as a statutory compensation scheme. The FSCS is designed to provide protection and compensation to consumers who have incurred losses in relation to specific financial products and services.
Eligibility criteria: The FSCS determines eligibility for compensation based on certain criteria. Generally, individuals and small businesses (with certain limitations) that have dealt with a regulated firm are eligible for compensation under the scheme. The FSCS provides coverage for various financial products, such as deposits, insurance policies, investment products, and certain types of advice.
Compensation limits: The FSCS sets compensation limits that determine the maximum amount that can be paid out to a consumer for a specific claim. These limits vary depending on the type of financial product or service and are subject to periodic review and adjustment.
Insolvency of regulated firms: The compensation provisions under Section 90 also come into play when a regulated firm becomes insolvent and is unable to meet its financial obligations to consumers. In such cases, the FSCS may step in to provide compensation to eligible consumers.
Funding: The FSCS is funded through levies imposed on authorised firms in the financial services sector. Regulated firms are required to contribute to the compensation fund based on their size and the risks they pose to consumers.
The availability and extent of compensation under Section 90 of the Act may be subject to certain conditions, limitations, and exclusions. The specific details and processes regarding compensation claims, eligibility, and the calculation of compensation amounts are governed by the rules and regulations established by the FSCS.
