Source · Select Committees · Treasury Committee
Recommendation 9
9
Acknowledged
Paragraph: 61
Find replacement dispute resolution for FOS-ineligible SMEs and consult by year end 2024
Conclusion
HM Treasury must find a way to continue to meet the dispute resolution needs of those SMEs ineligible for FOS access (including considering whether the FCA was correct in assuming that expanding the FOS’ thresholds would be a disproportionate cost). A consultation on a replacement mechanism must take place by year end 2024.
Government Response Summary
The government generally supports the Financial Ombudsman Service (FOS) and describes its important role in resolving disputes, but does not commit to finding a new mechanism for ineligible SMEs or consulting on a replacement.
Paragraph Reference:
61
Government Response
Acknowledged
HM Government
Acknowledged
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.