The Financial Services Authority regulates the banking and insurance industry in the UK. In 1999, the FSA announced its plan to establish a mediation scheme to offer a faster and less formal resolution process in enforcement cases. This was the first ever mediation scheme proposed by a UK regulator.
CMI director Bill Marsh was retained to act as adviser to the FSA in the design and implementation of the mediation scheme. Initial proposals were drafted and became the subject of widespread consultation within the banking and insurance industry, which openly welcomed the move. Bill worked in close liaison with the FSA to agree the details and operation of the scheme, and then to implement it. The Scheme went live in November 2001, and has operated successfully since, with growing demand.
The use of mediation in a regulatory context brings particular challenges to the design process, all of which were successfully overcome.