The FSA still needs to answer longstop questions

The FSA has publicly stated that it cannot override statute yet, but in setting the Disp rules it has overridden statute. The Limitation Act and the Latent Damages Act have not been rescinded and every UK citizen – bar financial services participants – has this protection.

The FSA says that in its legal counsel’s view it was parliament’s intention to remove the longstop.

Where is the evidence for this? Did parliament debate the matter? No. Did a sub-committee look into the removal? No. Did the FSA consult on the removal? No.

Forget the fairness issue, forget the human rights aspect, this is about the regulator availing itself of powers to create, amend or ignore law and this is the corrosive tip of what may yet come to be.

Alan Lakey

Partner

Highclere Financial Services

Hemel Hempstead

Hertorfdshire