We are consulting on proposals to require personal investment firms (PIFs) to set aside capital so that they can cover compensation costs, ensuring the polluter pays when consumers are harmed. The proposals would require PIFs 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. Any firm not holding enough capital would be subject to automatic asset retention rules to prevent them from disposing of their assets.
