UK appeal court reduces payout risk for mis-sellers

A recent appeal court decision should be a relief for banks facing civil suits as well as penalties for mis-selling

The Court of Appeal for England and Wales has held that a complainant cannot accept an award from the Financial Ombudsman Service (FOS) and subsequently bring a civil action in court for additional redress in respect of the same complaint. This landmark decision resolves the uncertainty that had arisen from two previous conflicting High Court judgments and will provide some relief, and welcome clarification of the law, for investment managers, financial advisers and professional indemnity