Source · Select Committees · Treasury Committee
Recommendation 10
10
Accepted
Continue active review of FOS resourcing to ensure SME community capacity
Recommendation
HM Treasury and the FCA should also continue to the keep resourcing of the FOS under active review to ensure that it has the prerequisite capacity and capability to serve the majority of the SME community. (Paragraph 62) Business debanking
Government Response Summary
The government commits to continuing engagement with the FCA and FOS to address resourcing issues, referencing a package of measures announced at Mansion House, including a Call for Input, an updated Memorandum of Understanding, and a strengthened Wider Implication Framework to modernise the FOS and enhance its operational effectiveness.
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.