Recommendation 152

The FCA and FOS are operationally independent. The FOS’s role is to resolve disputes referred to it. The FCA does not have a role in the FOS’s decision-making, and it cannot direct the FOS to take certain steps. Under the current system, when cases have wider implications, the FCA can provide the FOS with its views on the interpretation of its rules where relevant via the Wider Implications Framework (which was launched in 2022 as a means for certain regulators to work with each other on issues that could have a wider impact across industry 226 ). In addition, FSMA 2023 introduced a duty for the FCA and the FOS to cooperate. 227 However, due to the FOS’s statutory independence, the FCA does not have the power to direct the FOS to uphold a particular interpretation, nor does the FOS have an obligation to consult the FCA. 228