Recommendation 151

Under FSMA 2000, the FOS is required to make decisions based on what it considers “fair and reasonable in all the circumstances of the case”. 224 The FCA’s Dispute Resolution (DISP) rules dictate how firms and the Financial Ombudsman Service handle complaints. Under these rules the ‘fair and reasonable’ test requires the FOS to take into account: “(1) relevant: (a) law and regulations; (b) regulators’ rules, guidance and standards; (c) codes of practice; and (2) (where appropriate) what [it] considers to have been good industry practice at the relevant time.” 225