Recommendation 154

The City of London Corporation told us that the FOS “now often applies new interpretations of regulations to past conduct, and can make ‘test case’ decisions of wide application.” 231 It stated that: “This has increased the number and complexity of the FOS’s assessments, reducing the FOS’s ability to deliver as effectively as possible for consumers. Some practitioners note that it also means that the FOS judges against standards and requirements that did not exist at the time, which causes uncertainty/deters investors, undermining banks’ ability to support the economy.” 232