| Link(s): | New measures to modernise and transform the UK redress system – Financial Ombudsman service Financial Ombudsman Service reform to deliver fast and impartial complaint resolution – GOV.UK |
Context
Together with the Financial Conduct Authority, the Financial Ombudsman Service is strengthening the redress system so consumers get fair and quick compensation when things go wrong, and businesses have more certainty to invest, grow and compete.
The reforms being delivered will help firms address and resolve customer issues more effectively and proactively, escalate major or emerging redress issues earlier, and speed up complaint resolution; with FOS continuing to operate independently, making decisions that are fair and reasonable and better aligned to regulatory rules.
Key points to note and next actions
Following feedback from industry and consumer groups, the FOS and FCA have outlined the next steps on their joint work to modernise the redress system. Key changes being proposed include:
- A new registration stage to ensure complaints referred to the Financial Ombudsman are within its scope and ready to be investigated before being allocated to a caseworker.
- New powers to dismiss complaints that are best resolved in other ways, are more appropriate for courts or another dispute resolution process, or where there has been no material financial loss, distress or inconvenience.
- Adapting the current ‘fair and reasonable’ test the Financial Ombudsman applies when considering a complaint to improve clarity, regulatory alignment.
The changes come alongside wider government proposals on reforming the Financial Ombudsman, and mark a significant step in the delivery of a strengthened redress system which is transparent, robust, and fair to all parties in today’s evolving financial landscape.
James Dipple-Johnstone, Interim Chief Ombudsman at the Financial Ombudsman Service, said: “The financial sector has changed significantly since the Financial Ombudsman was set up 25 years ago, which is why we are driving forward changes to transform the redress system. We are laying the foundations for an agile, responsive and modern service which is fit for the future and has the confidence of consumers and firms alike. “
“Building on improvements we have delivered already these new measures will further modernise our operations to ensure we remain a service which keeps pace with a changing sector in delivering our vital service for consumers and supporting confidence in UK financial services.”