Source · Select Committees · Treasury Committee
Recommendation 8
8
Deferred
Paragraph: 60
Close the Business Banking Resolution Service as it is not fit for purpose
Conclusion
The BBRS is not fit for purpose in providing alternative dispute resolution to the 55,000 SMEs who fall outside of the FOS’ thresholds and this service should close as originally planned.
Government Response Summary
The government did not address the recommendation to close the BBRS, instead highlighting the role and importance of the Financial Ombudsman Service (FOS) for dispute resolution.
Paragraph Reference:
60
Government Response
Deferred
HM Government
Deferred
9. The Government also supports the work of the Financial Ombudsman Service (FOS). The FOS plays an important role in providing consumers and small businesses with a cost-free service that enables the proportionate, prompt and informal resolution of disputes with financial services firms. It is designed as an alternative to consumers and small businesses having to take a case against a firm to court, which would be expensive and time consuming for both parties. The FOS therefore provides firms with an extra incentive to comply with their regulatory requirements and provides consumers with confidence to invest in regulated products.