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

• Author: Young Yoon Park
• Position: Attorney-at-Law (Korean Bar) practicing at Yulchon LLC. B.A./M.A. in Economics (Seoul N.U.), J.D. (magna cum laude, Yonsei), LL.M. (King's College London). ORCID: https://orcid.org/0000-0003-4443-1622. The author may be contacted at: yypark@yulchon.com / Address: Parnas Tower, 38th Floor, 521 Teheran-ro, Gangnam-gu, Seoul 06164 Korea.
• Pages: 321-336

Young Yoon Park

∗

    

regulator based on powers stipulated in Financial Services and Markets Act 2000. FCA

     

PPI holders and pay redress to them if mis-selling was found. The opt-out class action,

 

     

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

   

characterized as mass victims with small damages.

Keywords

Payment Protection Insurance, Mis-selling, Suitability, Consumer

Redress Scheme, Class Action, Mass Torts

Regulator-led Resolution

in Mass Finance Mis-selling:

Implication of the UK

PPI Scandal

∗ Attorney-at-Law (Korean Bar) practicing at Yulchon LLC. B.A./M.A. in Economics (Seoul N.U.), J.D. (magna cum

laude, Yonsei), LL.M. (King’s College London). ORCID: https://orcid.org/0000-0003-4443-1622. The author may

be contacted at: yypark@yulchon.com / Address: Parnas Tower, 38th Floor, 521 Teheran-ro, Gangnam-gu, Seoul

06164 Korea. This paper was fully revised and updated version of the author’s thesis for master of laws degree titled,

“Applicability of Regulatory Intervention as Efficient Way of Collective Redress to Korea - Review on the UK PPI Case”

submitted to King’s College London (2019). All the websites cited in this article were last visited on November 15, 2019.

J. EAST ASIA & INT’L L. Vol. 12/No.2 (2019); 321-336

Publication type : Research Article

Section : Notes & Comments

DOI : http://dx.doi.org/10.14330/jeail.2019.12.2.05

322 Young Yoon Park

1. Introduction

     



Protection Insurance (“PPI”

      

  



   

1

“  

”

2

    ’ 

 ’   

  

     

      

  

      

  



3

  

      

     

       



“”

4

     ’s

      

    

“”  

       ’s

1 Fin. Conduct Auth., Consultation Paper 15/39: Rules and Guidance on Payment Protection Insurance Complaints,

2015, ¶ 1.23 (UK).

2 Brit. Bankers Ass’n, v. Fin. Serv. Auth. & Fin. Ombudsman Serv. [2011] EWHC 999 (Admin) 1.

3 Fin. Serv. Auth., Final Notice to Swinton Group, 2009, ¶ 2.6; Plevin v. Paragon Pers. Fin. Ltd. & Another [2012] EW

Misc. 24; Fin. Conduct Auth., Handbook Disp App., 2010, at 3.6.2 (UK).

4 Plevin, EW Misc 24; Fin. Conduct Auth., Policy Statement 17/03: Payment Protection Insurance Complaint: Feedback

on 16/20 and Final Rules and Guidance, 2017, ¶ 3.11 (UK).