In the UK, the "wash-up" process that bills with cross-party agreement go through so that they can be passed before the dissolution of Parliament resulted in a notable casualty last week. The high-profile Financial Services Bill now before Parliament had contained provisions that would have allowed, for the first time, "collective redress," i.e., class actions, by consumers against financial firms.

However, UK officials stated that the relevant provisions were removed from the bill in the hopes of quick approval. City Minister Lord Myners said that the government still believes the class action provisions are "necessary, sensible and desirable," and may be proposed again in the future.

Reaction to the removal of the class action provisions in the wash-up was mixed. Labour's Lord Whitty expressed "complete dismay" at the development, adding that it would have been "very popular and very effective." Stephen Everard, managing director at Goal Group, added that the move was a blow to shareholders, as many European investors "currently have no right to redress and no efficient way to bring a joint lawsuit despite having suffered fraudulent or irresponsible corporate behaviour,” he said.

Lawyers representing financial institutions and insurers, however, emphasized that any class action provision must come with proper checks and balances, which some believed the bill lacked. Mathew Rutter, a partner at law firm Beachcroft, told the Post Online that it was not at all clear why the financial services sector should be the first area for class actions in the UK when an ombudsman and the FSA already regulate the industry "quite heavily." An Association of British Insurers spokesman added that an "effective and fair mechanism for collective consumer redress" would be vital to ensure it does not contain any harmful unintended consequences.