Regulator-led Resolution in Mass Finance Mis-selling: Implication of the UK PPI Scandal

IF 0.2 Q4 LAW
Y. Park, B A Yulchon Llc., M. Economics
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引用次数: 0

Abstract

The resolution process of PPI scandal was led and driven by the UK’s FCA- financial regulator based on powers stipulated in Financial Services and Markets Act 2000. FCA made rules requiring financial institutions concerned to assess mis-selling claims of PPI holders and pay redress to them if mis-selling was found. The opt-out class action, in contrast, is not likely to handle finance mis-selling collectively because commonality requirement is not easily satisfied. The PPI resolution process overcame this problem by assigning the investigation and assessment of individual aspects of the disputes to the financial institutions concerned. This approach is equitable in that financial institutions which are liable to the scandal bears the time and pecuniary cost instead of relying on public resources of courts as in the litigation. The regulator-led resolution can be helpful in designing collective resolution system of finance mis-selling which is characterized as mass victims with small damages.
监管机构主导解决大规模金融错误销售:英国PPI丑闻的影响
PPI丑闻的解决过程由英国金融行为监管局领导和推动,该监管机构基于2000年《金融服务和市场法》规定的权力。FCA制定了规则,要求相关金融机构评估PPI持有人的不当销售索赔,并在发现不当销售时向他们支付赔偿金。相比之下,选择退出集体诉讼不太可能集体处理财务不当销售,因为共同性要求不容易得到满足。PPI解决程序通过将争议的各个方面的调查和评估交给相关金融机构来解决这一问题。这种做法是公平的,因为对丑闻负有责任的金融机构承担时间和金钱成本,而不是像诉讼中那样依赖法院的公共资源。监管机构主导的解决方案有助于设计金融不当销售的集体解决系统,该系统的特点是受害者多、损失小。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
0.40
自引率
50.00%
发文量
8
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