Financial services—Financial Services Authority (FSA)—Regulation of financial services

Queen’s Bench Division, Administrative Court (London), Haddon-Cave J, 11 Oct 2012

The Administrative Court has set out the principles and approach to be taken by the Financial Services Compensation Scheme Ltd, having regard, inter alia, to R v Investors Compensation Scheme Ltd, ex p Bowden [1995] 3 All ER 605

Mark Cannon QC and Can Yeginsu (instructed by Manley Turnbull Solicitors) for the claimant. Andreas Gledhill (instructed by SNR Denton UK LLP) for the FSCS.

In 2005, the claimant and her partner sought financial advice regarding their mortgage from their insurance and mortgage brokers. The advice was given by a broker whose work was authorised and regulated by the Financial Services Authority (FSA). Following S’s advice, the claimant and her partner re-mortgaged their home by redeeming the existing repayment mortgage and taking out a fresh, larger interest only mortgage with a longer 15-year term. They used the balance to invest