On 14 January 2025, the Financial Conduct Authority (FCA) published two new webpages, providing an update for firms on redress liabilities and information on how to identify and report ‘polluting behaviour’ (where firms try to avoid potential or actual liabilities generated in the course of their regulated activities).
Update for firms
The ‘update for firms’ webpage sets out what firms should and should not do to tackle polluting behaviour and meet their redress liabilities. It includes details on:
- Why the polluter should pay (including the damage caused to retail consumers who are unable to seek appropriate redress from the firm whose actions caused them loss).
- What firms should do.
- What firms should not do.
- What to expect from the FCA in relation to redress liabilities.
Information on identifying and reporting polluting behaviour
The webpage on how to identify and report polluting behaviour includes information on:
- Six main examples of polluting behaviour (basic ‘phoenixing’, lifeboating, fronting, sale at an undervalue, restructuring, and proceeds of sale not applied to redress).
- The FCA’s expectations for firms in relation to redress.
- How regulated firms, financial advisers, compliance firms and other financial advice organisations can help.