This pack outlines some issues and statistics regarding the resolution of commercial financial disputesJump to full report >>
This debate calls for the establishment of a broader and more inclusive system of dispute resolution of commercial disputes in financial services than currently exists. The debate is scheduled for 15 December 2016 in the Chamber. It is sponsored by George Kerevan MP (SNP).
The background is that there have been two separate ongoing issues between banks and small firms – interest rate swaps and the RBS global restructuring group – which have both highlighted the limitations of the Financial Conduct Authority (FCA) in providing a remedy when the activity is at or beyond the edge of the regulatory perimeter.
Compromise settlement procedures – or bespoke schemes as the FCA called them - overseen by the FCA and accepted by the banks, have been lengthy and have produced unequal results.
With the possibility of future, similar issues arising, the debate calls for regulators and industry groups to work together “to create a sustainable platform for commercial financial dispute resolution”. The issue was first raised during an evidence session of the Treasury Committee by the head of the FCA Andrew Bailey.
Commons Debate packs CDP-2016-0247
Author: Tim Edmonds