The Government is consulting on FOS reforms. The reforms are designed to stop FOS acting as a quasi-regulator – most notably to ensure its decisions align more with FCA rules. Proposals include:
- adapting the current “fair and reasonable” test;
- giving the FCA more flexibility to manage mass redress events;
- a formal mechanism for it to refer issues to the FCA for interpretation of FCA rules when appropriate; and
- a mechanism to allow firms and complainants to refer an issue to the FCA for clarity on its rules before the FOS issues a final decision.
The FCA and FOS are also consulting. They ask for views on:
- good practice examples for identifying and monitoring redress issues;
- amendments to SUP that clarify when firms should report the identification of issues causing foreseeable harm or systemic issues;
- criteria to help determine whether an issue is a mass redress event or has wider implications;
- a new registration regime for FOS complaints;
- better collaboration between the FCA and the FOS through a new lead complaint process and a referral mechanism.
Additionally, the FOS has confirmed that t will change the interest rates to some awards, so that they will track the BoE base rate +1%.
The consultations close on 8 October.