Recommendation 175

Any reform to the redress framework should be focused on ensuring that the FCA’s and FOS’s views on regulatory requirements are consistent. We believe the following actions should be prioritised: (a) That the FCA is consulted on judgements that are likely to have sector- wide implications. We agree that the FCA should review its DISP rules with a view to enabling the FOS to pause its timescales while it awaits FCA input on the interpretation of its rules and guidance. (b) The precedent-setting effect of FOS decisions should be reviewed, with a view to removing it entirely, particularly for mass redress events whilst retaining the FOS’s original purpose of providing quick and free individual redress. (c) We welcome that the Government has indicated it will consider legislative change if necessary. We stress that the FOS’s remit must be brought closer in line with its original mandate, to provide swift redress rather than examining major complex issues—it cannot continue to function as a quasi-regulator. Consumer Duty