Compensation and redress schemes are vehicles deployed to remedy the most sensitive problems in financial services. They must bear heavy loads. These include delivering justice for large groups of consumers and resolving complex legal claims without court proceedings.

Yet, to date, there has been no roadmap providing guidance on when and how a scheme should be established. As a result, schemes often have deeply unsatisfactory outcomes. They are established on an ad hoc basis, outside the usual court and ADR structures, with inherent conflicts of interest.

In response to these challenges, the APPG produced the UK’s first systematic review of redress and compensation schemes, and the first guide to best practice when schemes are designed and implemented.