Fighting the cause for causation...
In response to my press release about a proposal to do away with the law of causation from the financial services sector (on which Robbie Constance commented in more detail)
the FSA said (according to Money Marketing) that the proposal included in the memo to the committee is only a suggestion to be considered by MPs and should not be taken as firm FSA policy.
I acknowledge the FSA has not expressly said it wants this change in the law but why would it invite the debate if it does not seek this mandate? The issue is not raised in the draft Financial Services Bill but has been raised voluntarily by the FSA.
By comparison, it is interesting that despite Hector Sants' comments back in March that the FSA would reconsider the long stop time bar issue if Parliament so directs, the FSA has not asked the Committee to debate that issue.
If, however, the FSA is saying that it positively does not want the FCA to have any such power but is merely suggesting Parliament consider the issue, then we and (judging by the reaction to the story from firms and their insurers) the financial services sector would welcome this clarification.