Emptage v Financial Services Compensation Scheme Ltd

FSCS erred by excluding losses arising from the mortgage advice breach, wrongly believing it had no power to compensate for losses linked to unregulated investment. The correct approach was to compensate for the loss caused by unsuitable mortgage advice, which exposed Ms Emptage to the risk of being unable to repay the loan.

Parties: Claimant/respondent: Charmaine Emptage; Defendant/appellant: Financial Services Compensation Scheme Limited
Jurisdiction: England and Wales
Judgment Date: 18 June 2013
Procedural Posture: Judicial Review / Appeal From High Court Judgment
Outcome: Appeal dismissed
Legal Topics: Compensation Scheme, Regulated Activities, Mortgage Advice, Judicial Review

Financial Services Law Administrative Law Compensation Scheme Regulated Activities Mortgage Advice Judicial Review

Case Brief

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Parties

Charmaine Emptage

Claimant/respondent

Financial Services Compensation Scheme Limited

Defendant/appellant

Procedural Posture

Judicial Review / Appeal From High Court Judgment

Legal Issues

1 Whether FSCS was required or entitled to ignore losses arising from investment in Spanish property when assessing compensation for breach of mortgage advice duty
2 Whether FSCS exercised its discretion properly under COMP 12.4.17R and MAA/3

Ratio Decidendi

Court Disposition

Appeal dismissed

Orders

FSCS must reassess compensation to include losses caused by unsuitable mortgage advice