(Reuters) – Britain’s Financial Conduct Authority (FCA) on Wednesday proposed that personal investment firms that give bad advice would need to set aside capital to cover compensation costs when consumers are harmed.
The proposals would require personal investment firms, often referred to as investment advisers, to calculate their potential redress liabilities at an early stage, set aside enough capital to meet them and report potential redress liabilities to the FCA, the regulator said in a statement.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Dhanya Ann Thoppil)
