Latest news with #redressscheme
Yahoo
5 days ago
- Automotive
- Yahoo
Six steps firms must take to prepare for potential FCA redress
With a possible FCA-mandated redress scheme on the horizon, motor finance firms must act swiftly and strategically. From data integrity to governance frameworks, this article outlines six critical priorities to help organisations stay ahead of the curve — and avoid costly delays. As the motor finance industry awaits the Supreme Court's judgment on historic commission arrangements, the Financial Conduct Authority (FCA) has indicated that it will confirm within six weeks if it proposes to mandate a consumer redress scheme. Drawing on the FCA's public statements and our internal industry insights, this article outlines six critical priorities motor finance Firms should focus on to ensure that they are institutionally ready for what could be one of the most significant consumer remediation exercises in recent UK financial history. The time to prepare is now. 1. Understand your data sources, gaps, and integrity At the heart of any redress scheme lies data. When a redress scheme is mandated, Firms will need to assess whether customers were harmed by commission arrangements, likely within a pre-defined 'Relevant Period' and, if so, calculate redress accordingly. This requires a deep understanding of historical data - some of which may date back to 2007. Key questions firms should be asking now include: What data points are needed to assess a claim? For example, counterfactual cashflows, commission structures, and customer disclosures Where is this data stored? Is it digital, archived, or in hard copy? Where is it located? Is the data complete and accurate? Are there gaps that need to be filled or inconsistencies that need to be resolved? Can you quickly build a contact list of in-scope customers? This includes verifying addresses and tracing customers who may have moved or passed away. Given the length of time that an FCA remediation scheme has been on the horizon, there is unlikely to be a large amount of sympathy afforded for delays due to data retrieval and cleansing. 2. Redress process design is iterative and takes time Designing a redress process is not a one-off task - it is a dynamic, evolving process. The FCA has indicated that any scheme will be principles-based rather than rooted in a basic counterfactual cashflow review. Meaning that Firms will likely need to tailor their approach to their specific commission models and customer bases. Initial frameworks will almost certainly undergo multiple iterations as Firms and the FCA build a shared understanding of what fair redress looks like. 3. Scope and eligibility: plan for multiple scenarios One of the most challenging aspects of any redress scheme is defining who is in scope and who is eligible. Scope refers to whether a complaint relates to a Relevant Commission Arrangement during the Relevant Period Eligibility considers whether the complainant is entitled to redress (for example, are they the original customer, a legal representative, or a CMC?), and if so, how the scheme might engage with them Firms should develop contingency plans for different scenarios. Also, a robust eligibility filter can help avoid double compensation and ensure consistency. 4. Prepare to design a process map that accommodates split complaints Split complaints - where a single customer has submitted a complaint concerning both in-scope and out-of-scope acts or omissions - pose a unique challenge. Firms should: Define what constitutes a split complaint Design a process map that clearly delineates how such cases will be handled Ensure compliance with DISP (Dispute Resolution: Complaints) rules for regulated products, while developing DISP-adjacent processes for in-scope complaints. 5. Consider a strong project governance framework No redress scheme can succeed without robust governance. This includes: A dedicated Project Management Office to track progress, manage risks, coordinate across functions, and manage resources in a lean and agile way A project board to provide strategic oversight and challenge A complex case committee to handle nuanced or precedent-setting complaints Legal and risk teams experienced in overseeing FCA mandated redress schemes to provide second and third lines of defence Firms should take care in engaging consulting firms to design and deliver a redress scheme. Firms should instead consider the benefit of engaging a law firm to support them in designing, delivering, and risk assure a redress scheme, which will provide all the specialist capabilities required, with the addition of providing an appropriate veil of legal privilege over aspects of the investigation of the complainants, programme design and decision making. 6. Remember, a redress programme is not a change programme A redress scheme is a unique type of programme. The one thing to fix at the forefront of your thinking is that a redress programme is not a change programme. When redress programmes are designed and delivered by change managers, there are three certain risks - the programme will: Overrun Overspend Be overly complicated This approach would be wholly at odds with the FCA published principles of timeliness, simplicity and cost effectiveness. When engaging external expertise, firms should satisfy themselves that they are engaging firms with demonstrated experience in designing and delivering large-scale remediation programmes. Conclusion: readiness is a strategic advantage The FCA has made it clear that it wants to move quickly once the Supreme Court delivers its judgment. Firms that wait for certainty before acting risk being left behind. By focusing now on locating data, data integrity, process design, eligibility criteria, complaint mapping, and governance, motor finance Firms can position themselves not only to comply with a future redress scheme, but to lead it. The road ahead may be uncertain, but the direction is clear. Readiness is no longer optional - it is a strategic imperative. Wayne Gibbard is a Partner at Shoosmiths. Peter Richards-Gaskin leads on Financial Services Disputes, Remediation, and Investigations as a Partner at the firm. "Six steps firms must take to prepare for potential FCA redress" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. 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The Independent
6 days ago
- Business
- The Independent
‘More than 100 survivors' of alleged abuse by Al Fayed enter redress scheme
More than 100 survivors of alleged sexual abuse by Mohamed Al Fayed have entered Harrods' redress scheme, the department store said as it also confirmed applicants had started receiving compensation. The scheme, developed with law firm MPL Legal and funded by Harrods, opened for applications at the end of March and will remain live until March 31 next year. In a three-month update, the store announced that survivors who were employed by Mr Al Fayed's private airline company Fayair (Jersey) Co. Limited, and claim to have suffered abuse before May 7 2010, can now also apply to the scheme. 'Since the redress scheme's inception, more than 100 survivors have entered the process, with many having had eligibility confirmed,' Harrods said. 'Compensation awards and interim payments began being issued to eligible survivors at the end of April. 'Survivors are making use of both the non-medical and medical pathways.' The store also stressed that the scheme did not require survivors to undergo medical assessment. 'There have been misleading reports that the scheme requires survivors to be assessed by a medical expert,' it said in its FAQs. 'Harrods would like to reassure survivors that this is not the case. Since its launch, the scheme has provided eligible applicants with a choice to proceed with either a non-medical pathway or medical pathway.' Harrods 'apologises unreservedly' for the sexual abuse people suffered and 'wants everyone who is eligible to receive this compensation', according to documents on the scheme's website. Those eligible can apply for a number of types of compensation: – General damages of up to £200,000– Work impact payment of up to £150,000– Aggravated damages of up to £25,000– Wrongful testing fixed payment(s) of up to £10,000– Treatment costs All eligible applicants are offered a meeting with a senior Harrods' representative, to receive an apology in person or by video, as well as an individual written apology. The scheme only requires 'documentary evidence', meaning applicants are not asked to give oral evidence about their claims. If a person makes a successful application and accepts an offer, it is treated as 'full and final settlement', meaning they waive their right to pursue action for damages. It was reported earlier this month that the Metropolitan Police had apologised to alleged victims of Mr Al Fayed for the distress they had suffered in a letter leaked to the BBC. The Met is reviewing a total of 21 allegations that were made before Mr Al Fayed died in 2023, and had referred two of these to the Independent Office for Police Conduct (IOPC) in November. More than 100 alleged victims have contacted police to say they were sexually abused by the tycoon, the youngest of whom is thought to have been 13 at the time.
Yahoo
7 days ago
- Business
- Yahoo
‘More than 100 survivors' of alleged abuse by Al Fayed enter redress scheme
More than 100 survivors of alleged sexual abuse by Mohamed Al Fayed have entered Harrods' redress scheme, the department store said as it also confirmed applicants had started receiving compensation. The scheme, developed with law firm MPL Legal and funded by Harrods, opened for applications at the end of March and will remain live until March 31 next year. In a three-month update, the store announced that survivors who were employed by Mr Al Fayed's private airline company Fayair (Jersey) Co. Limited, and claim to have suffered abuse before May 7 2010, can now also apply to the scheme. 'Since the redress scheme's inception, more than 100 survivors have entered the process, with many having had eligibility confirmed,' Harrods said. ADVERTISEMENT 'Compensation awards and interim payments began being issued to eligible survivors at the end of April. 'Survivors are making use of both the non-medical and medical pathways.' The store also stressed that the scheme did not require survivors to undergo medical assessment. More than 100 alleged victims have contacted police to say they were sexually abused by Mohamed Al-Fayed (Anthony Devlin/PA) 'There have been misleading reports that the scheme requires survivors to be assessed by a medical expert,' it said in its FAQs. 'Harrods would like to reassure survivors that this is not the case. Since its launch, the scheme has provided eligible applicants with a choice to proceed with either a non-medical pathway or medical pathway.' Harrods 'apologises unreservedly' for the sexual abuse people suffered and 'wants everyone who is eligible to receive this compensation', according to documents on the scheme's website. Those eligible can apply for a number of types of compensation: ADVERTISEMENT – General damages of up to £200,000 – Work impact payment of up to £150,000 – Aggravated damages of up to £25,000 – Wrongful testing fixed payment(s) of up to £10,000 – Treatment costs All eligible applicants are offered a meeting with a senior Harrods' representative, to receive an apology in person or by video, as well as an individual written apology. The scheme only requires 'documentary evidence', meaning applicants are not asked to give oral evidence about their claims. Harrods is funding the scheme (Jonathan Brady/PA) If a person makes a successful application and accepts an offer, it is treated as 'full and final settlement', meaning they waive their right to pursue action for damages. It was reported earlier this month that the Metropolitan Police had apologised to alleged victims of Mr Al Fayed for the distress they had suffered in a letter leaked to the BBC. ADVERTISEMENT The Met is reviewing a total of 21 allegations that were made before Mr Al Fayed died in 2023, and had referred two of these to the Independent Office for Police Conduct (IOPC) in November. More than 100 alleged victims have contacted police to say they were sexually abused by the tycoon, the youngest of whom is thought to have been 13 at the time.
ABC News
21-07-2025
- ABC News
Stolen Generations members ineligible for redress deliver blunt message
Not all West Australians harmed by the forced removal of First Nations children in the 20th century will see reparations under a long-awaited redress scheme.
ABC News
20-07-2025
- General
- ABC News
Stolen Generations survivors, descendants want WA redress scheme expanded
Standing with Western Australia's beaming premier on the steps of parliament, Angela Ryder smiled briefly for a photo. Readers are advised that this article may contain an image of Indigenous people who have died. The announcement of a redress scheme for survivors of WA's Stolen Generations was something the 62-year-old Goreng/Wiilmen Noongar woman had spent years fighting for as part of Yokai, a group of survivors who came together in 2013. But for Ms Ryder and her sister Meredith Edmonds, the day was also bittersweet. Authorities took them and their siblings from their family's farm near Tambellup, 320 kilometres south of Perth, to Roelands Native Mission in 1973, after the scheme's cut-off date of July 1, 1972, meaning they are not eligible for the reparation payments the scheme provides for. "There was physical, emotional and sexual abuse that occurred during my time at the missions and also during my time in other state facilities," Ms Ryder said. Ms Ryder was 10 years old when she was first put in Roelands. She was later returned home, only to be forcibly removed again and twice sent to Wandering Mission, about 120km south-east of Perth. Ms Edmonds was just six and was removed four times in total, spending time in Roelands, Wandering and Marribank. Court records show the sisters were declared neglected and committed to state custody, though neither could recall ever attending court and both reported living a happy, stable life with their parents before they were taken. A government report from that year shows children in WA could be committed to state care if their parents were found to be neglectful or if they themselves were deemed "neglected by virtue of his own behaviour". The siblings will miss out on the $85,000 individual payments to be offered to individual survivors. But Ms Edmonds said what was more upsetting was the disregard for her lived experience. "We were still getting assimilated and put into missions after that date," she said. The state government told the ABC the cut-off date aligned with when the Native Welfare Act 1963 was repealed, replaced with the Aboriginal Affairs Planning Authority Act 1972. The new act abolished the Department of Native Welfare and created the Aboriginal Affairs Planning Authority, which was no longer directly involved in out-of-home care for Aboriginal children in WA, though records show it continued to fund missions into the 1980s. A national inquiry into the Stolen Generations found about one in 10 Aboriginal people in WA were in institutions in 1972, the majority children. The report showed the number of children committed to state care started to decline around this time but removals did continue. The Healing Foundation, an organisation supporting Stolen Generations survivors and their families, said it could take some time for shifts in practice to follow legislative change. Binjareb Noongar woman Alice Kearing said there were many more Stolen Generations survivors in WA removed after the cut-off date, including herself. She was taken to Roelands in 1974, aged four. Earlier this year, the 55-year-old was invited to share her own experiences at a series of events about WA's Stolen Generations. She was in the middle of one such presentation in late May when news of the redress scheme broke. "They talked about a cut-off date … I didn't know how to react," Ms Kearing said. "I felt like, 'What was I doing here? What was I doing, doing this presentation?' Ms Kearing said she immediately thought of her brothers, who had spent much of their time at Roelands trying to protect her, and would also miss out. "They were my heroes … that's a scar that won't go away ever." Ms Ryder and Ms Edmonds have called for the cut-off date to be based on when the state's last missions closed in the late 1980s. Ms Kearing said the cut-off date should be removed altogether. "Take that burden off my family." First Nations people taken after the cut-off date are not the only survivors to miss out on reparations. Many members of the Stolen Generations taken within the eligible time frame died waiting for the WA government to commit to a redress scheme. Noongar woman Isobel Bevis's mother was one of eight siblings torn from their parents and country in 1960. Only two of them are still alive. Ms Bevis said their deaths were not a "get out of jail free" card for the government. "I think it's disrespectful … of Premier Roger Cook to exclude those that have passed." Ms Bevis has written to Mr Cook asking him to reconsider the eligibility criteria. In a petition to the state government, Kariyarra Noongar woman Sharon Todd additionally advocated for repatriation and counselling programs to be funded, as well as headstones for those who have died. Ms Todd's late parents were both members of the Stolen Generations, and in 2021, she established WA's first Indigenous funeral service. "[The criteria] is putting a bandaid over the wounds of some without looking at all of us," she said. "Not knowing our language and not knowing the extended relationships … it makes it really difficult to move forward with confidence and clarity of where we belong." A 1997 inquiry by the Australian Human Rights Commission into the Stolen Generations said descendants should be included in reparations to acknowledge the long-lasting intergenerational trauma caused by forced removals. This has not been written into WA's redress scheme, despite Mr Cook acknowledging in his speech in May that the forced removal of children had "caused cycles of disadvantage and intergenerational trauma". The state government said the scheme was focused on living individuals who suffered as a result of their removal but that survivors of those who died after the scheme was announced could apply on their behalf. "The WA government is working with Stolen Generations organisations on additional measures to address healing and truth-telling," a spokesperson said. The scheme is expected to open to applications later this year.
