Extent to which financial services compensation scheme can pursue claims assigned to it by investors whom it has compensated
Journal of Financial Regulation and Compliance
ISSN: 1358-1988
Article publication date: 20 February 2009
Abstract
Purpose
The paper's aim is to report and comment on two preliminary issues that arose from claims being pursued by the Financial Services Compensation Scheme (FSCS) against Abbey National Treasury Services (ANTS) and NDF Administration Ltd (NDF).
Design/methodology/approach
The paper outlines the facts and explains the decision.
Findings
The FSCS commenced action against ANTS as assignee of the assigned claims and alleged that ANTS had collaborated with NDF in product development and promotion of the Structured Capital at Risk Products and was liable in negligence and misrepresentation to the investors whose claims it held as assignee. Having considered the arguments, the Judge concluded that FSA did have power to make rules enabling FSCS to take assignment of investor claims.
Originality/value
The issues in this case go to the heart of the funding mechanism of the FSCS. The financing of such compensation schemes is a perennially controversial issue in every jurisdiction that has them.
Keywords
Citation
Gray, J. (2009), "Extent to which financial services compensation scheme can pursue claims assigned to it by investors whom it has compensated", Journal of Financial Regulation and Compliance, Vol. 17 No. 1, pp. 70-75. https://doi.org/10.1108/13581980910934054
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited