Source · Select Committees · Treasury Committee
Recommendation 5
5
Accepted
Paragraph: 33
Continue dialogue with FOS and review resourcing to serve the SME community
Recommendation
HM Treasury and the FCA should continue their dialogue with the FOS and keep resourcing under active review, to ensure that it has the prerequisite capacity and capability to serve the majority of the SME community.
Government Response Summary
The government accepts the recommendation, stating it will continue engagement with the FCA and FOS, addressing relevant resourcing issues, and aligning FOS rules. It also outlines broader measures announced by the Chancellor to modernise the FOS framework and improve its operational effectiveness.
Paragraph Reference:
33
Government Response
Accepted
HM Government
Accepted
We refer the Committee to our response above: we will continue our engagement with the FCA and the FOS, ensuring we are addressing relevant resourcing issues, ensuring that FOS rules are aligned with the current financial services landscape and correctly serving the SME community. As the Committee notes, the FOS is currently undertaking a programme of work to improve its service, following an independent review of its operational effectiveness in 2021. We will continue maintaining regular engagement with the FOS, addressing relevant operational issues, ensuring that FOS rules are aligned with the current financial services landscape, and facilitating effective cooperation with the FCA. More generally, the Government also believes it is important that the FOS works effectively with the FCA to deliver consistent outcomes for both firms and consumers. This is why at Mansion House the Chancellor announced a package of measures being taken forward by the FCA and the FOS, working closely with Government, to modernise the framework underpinning the FOS and help create a predictable and attractive environment for investment, as well as supporting the operational effectiveness of the FOS in dealing with mass redress events. This includes a Call for Input on modernising the redress framework, an updated Memorandum of Understanding between the FOS and the FCA, and a newly strengthened Wider Implication Framework which gives both industry and complainants clearer routes to raise concerns.