Professional negligence claims could rise with new retail rules

Published on 8 Jun 2010 under category: legal

Professional negligence claims could increase, if new industry retail rules come into place.

The Financial Services Authority (FSA) has brought out new legislation to improve levels of competence in the financial products industry.

Professionals will have to gain new qualifications and those who are mid-way through training may not be allowed to practice until they complete their exams.

The moves are part of a drive to raise consumer protection.

It could also mean that professional negligence claims could increase, unless companies meet the tough new standards.

Commenting on the move, Sheila Nicholl, director of consumer policy at the organisation, said: "We want to see firms operating robust training and competence schemes and individuals demonstrating good standards of ethical behaviour.

"We have designed these proposals to enhance consumer protection by strengthening our competence and approved persons requirements."

The new rules could be a response to previous training and competence measures implemented in 2007.

In its consultation paper, it said that many cases of incompetence were because training failed to keep up with market innovations.

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