Member

Clause 10 changes that. It removes the requirement that redress must be available in legal proceedings. Instead, the FCA need only have regard to the possibility of consumers obtaining redress under the ombudsman scheme, but Clause 6 extends the ombudsman time limit to 10 years. I do not think that the Government have justified that change. The six-year limitation period exists for good reasons. Six years is the standard period in UK civil law under the Limitation Act 1980. It reflects the point at which claims become stale, evidence becomes unreliable and firms may no longer have the records needed to defend themselves properly. To extend that period to 10 years for the purposes of consumer redress schemes is a serious step. Amendment 44 therefore provides a simpler proportionate safeguard. It would ensure that the FCA cannot impose a consumer redress scheme in respect of loss or damage where, by reason only of the lapse of time, no remedy or relief would be available in legal proceedings on the date the rules are made. It also preserves appropriate exceptions for cases equivalent to fraud or deliberate concealment.