| Link(s): | Financial Ombudsman Service and FCA move to modernise redress system – Financial Ombudsman service |
Context
In conjunction with the FCA (as outlined above), FOS has announced details of the Call for Input which seeks to review and modernise the redress system. This is an effort to ensure that fewer instances of ‘mass redress events’ arise and that consumers / complainants receive appropriate redress when things go wrong. To achieve this, the FCA and FOS are considering a number of shorter- and longer-term remedies.
Key points to note and next actions
FOS wants to help ensure that:
- Firms identify harm at an early stage, proactively address it, and resolve complaints more effectively, reducing the need for consumers to complain to FOS.
- Redress issues can be identified earlier so they can be resolved swiftly and efficiently.
- Communications with consumer and industry stakeholders are improved, making it quicker and easier to flag matters with wider market implications.
- Wider implications of FOS decisions are shared and discussed as part of the Wider Implications Framework.
- Professional Representatives (e.g., claims management companies) are charged under a fair fee model for bringing complaints on behalf of customers.