Financial Ombudsman Service
The question
To ask the Chancellor of the Exchequer, what the (a) scope and (b) remit is of the Treasury review into Financial Ombudsman Service.
Answered by Emma Reynolds
The Treasury will examine whether the Financial Ombudsman Service (FOS), is delivering its role as a simple, impartial dispute resolution service which quickly and effectively deals with complaints against financial services firms, and which works in concert with our Financial Conduct Authority which regulates the sector.
The review will focus, in particular, on a range of points that have been raised through the recent Call for Evidence on the Growth and Competitiveness Strategy. This will include addressing concerns around:
- The framework in which the FOS operates which has led to it acting, at times, as a quasi-regulator;
- Whether the FOS is applying today’s standards to actions that have taken place in the past; and
- The practices that have grown up over time on compensation.
The review builds on the announcements the Chancellor made at Mansion House, as well as modernising the FCA’s rules for dispute resolution. As part of the review, the government will consider whether any legislative changes are necessary to ensure that we have a dispute resolution system in the UK which is fit for a modern economy.
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