Source · Select Committees · Treasury Committee
Recommendation 10
10
Paragraph: 56
Decisions by the Financial Ombudsman Service set precedents and form a critical part of the...
Conclusion
Decisions by the Financial Ombudsman Service set precedents and form a critical part of the consumer conduct-focussed element of the regulatory environment for financial services in the UK. Given that the aim of the Treasury’s consultation is to create a more coherent framework for how financial services are regulated, the Treasury should consider as part of this consultation how the decision-making processes of the Financial Ombudsman Service would interact with the future regulatory framework for the FCA.
Paragraph Reference:
56
Government Response
Acknowledged
HM Government
Acknowledged
The Committee’s report outlined concerns that where the Financial Ombudsman is making decisions which go against regulatory principles there should be some right of challenge for those the decision goes against. We and the Ombudsman Service are aware of the need to ensure that, where complaints potentially have wider implications, the Ombudsman is aware of our expectations of firms in the circumstances presented by the complaint, and we have given consideration to whether there are ways for consumers to obtain fair redress other than going through the complaints process. We and the Ombudsman are currently considering whether any changes to current arrangements are needed to ensure these outcomes are achieved.