| Link(s): | Modernising the redress system | FCA Call for Input: Modernising the Redress System | FCA Call for Input Modernising the Redress System |
Context
The FCA has published a Call for Input, jointly with FOS, seeking views from stakeholders on how to modernise the redress framework, so it better serves consumers and provides greater stability for firms to invest and innovate. The two organisations will also improve how they work together, and with industry and consumer groups through the Wider Implications Framework, to prevent the escalation of issues that can result in mass complaints and create significant redress liabilities for firms. This follows the Chancellor’s calls for greater cooperation between the organisations to give firms a more predictable regulatory environment that supports UK growth and international competitiveness.
Key points to note and next actions
The Call for Input is seeking views on:
- How the current redress framework could be modernised.
- The problems that mass redress events and the redress scheme in general cause firms, consumers and their representatives.
- What changes we could make to the redress framework to enable us to better identify and manage mass redress events to ensure better outcomes for consumers, firms and the market.
- What changes could be made to how we work together to ensure our views on regulatory requirements are consistent.
The Call for Input considers more recent ‘mass redress events (e.g., PPI, the British Steel Pensions Scheme) and sets out a number of options for change in two stages. The first stage would be changes the FCA or FOS can make to rules and processes in the short to medium term, including broadening the ‘dismissal’ grounds in the DISP Rules or introducing a longstop on the time limit for the referral of complaints to FOS.
The second of those stages would be longer term changes, including options to mitigate the impact of mass redress events. The deadline for firms to provide views is 30 January 2025., either using the online response form, by e-mailing redressmodernisationcfi@fca.org.uk, or by writing to the Redress & CMC Policy Team at the FCA. The FCA and FOS will summarise the responses and publish next steps in the first half of 2025.