FCA and FOS redress system

The Financial Conduct Authority (FCA) has published a joint consultation with the Financial Ombudsman Service (FOS) on modernising the redress system.

As part of the Chancellor’s Mansion House Speech, HM Treasury has also published proposals to modernise how the Financial Ombudsman assesses consumer complaints following their Action Plan from March 2025.

The FCA’s press release summarises both sets of proposals - Modernising the redress system and HM Treasury’s consultation. Both of which have a closing date of 8 October.

The FCA has worked to deliver a proposed package of measures which secures greater predictability for firms. Its proposals seek to ensure that:

  • Consumers can get appropriate redress when things go wrong.
  • Firms identify harm at an early stage, proactively address it and resolve complaints more effectively.
  • Mass redress events (MREs) or wider implications issues are identified earlier and notified to the FCA promptly, so problems can be resolved swiftly and efficiently.
  • The FCA and the Financial Ombudsman work together to ensure our views on regulatory requirements are consistent. This will provide a more predictable regulatory environment, helping to support investment and further the FCA’s secondary objective of facilitating growth and the international competitiveness of the UK economy.
  • The Financial Ombudsman can resolve complaints more quickly and with minimal formality - with a revised casework model and better-prepared cases leading to faster resolutions, reduced delays and improved outcomes for consumers. The proposals will also encourage earlier redress by firms.
  • There is a thriving, internationally competitive financial services sector, with economic growth supported by a more modern, efficient and informal alternative to courts through the Financial Ombudsman.

See the Mansion House 2025 collection on GOV.UK which includes the Chancellor’s speech, Financial Services Growth and Competitiveness Strategy and consultation documents.

FS Sector Strategy: Review of the Financial Ombudsman Service - GOV.UK

FS Sector Strategy: Regulatory Environment - Cross-Cutting Reforms - GOV.UK

Members with particular interest in this area of work may like to consider joining the Regulation and Compliance Working Group, email [email protected] or [email protected] for information.