Overview

The Financial Services Act 2010 has now received Royal Assent after receiving expedited passage through Parliament in the "wash-up" procedure before the UK general election.

However, the provisions relating to collective actions in the financial services sector were removed from the Financial Services Bill. Such a move has, at least for the time being, halted what would have been an important and far-reaching change to the way in which consumers can pursue claims against financial institutions. It would also have marked the first time that "opt-out" collective actions had been permitted under English law.

The provisions in the Bill relating to consumer redress schemes have, however, been retained and it is possible that consumers may be able to seek compensation via this route in some cases.

Here, we summarize the withdrawn provisions and cast an eye over other significant developments on the horizon.

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