The FSA said it has extended the scope and availability of its mediation scheme with the ACI (A Commercial Initiative for Dispute Resolution), with effect from 1 February 2004.
It said the changes followed a review of the pilot scheme that had been in operation since December 2001 as part of the FSA's enforcement process.
In the past only certain cases were eligible for mediation, said the FSA. It said it hoped the new scheme would encourage more individuals and firms to mediate when they are under investigation from its enforcement division.
It said settlements could result in agreed penalties and could also provide for compensation to be paid to investors in suitable cases.
However, cases involving criminal charges would not be eligible for the mediation scheme.
In the past, mediation had only been available after the firm under investigation had received a warning notice. The FSA said the extended scheme would make mediation available much earlier in the investigation process.
