The House of Lords Financial Services Regulation Committee has released a report urging reform of the Financial Ombudsman Service (FOS). It calls for both the Financial Conduct Authority (FCA) and FOS to clearly outline how they will address persistent issues in the redress framework and ensure alignment in their interpretations of regulatory standards.
The Lords committee emphasized the need for better accountability and transparency, stating that the current system leaves both consumers and financial firms without clear guidance.
Stephen Haddrill, Director General of the Finance & Leasing Association, welcomed the Lords report, highlighting the urgent need for clearer, more consistent processes to improve outcomes for all parties involved.
“The Committee has produced an incisive report that sets out the problematic dynamic between the Financial Conduct Authority and the Financial Ombudsman Service (FOS) with regards to the consumer redress framework.
“Having examined this issue from a competitiveness and growth perspective, their findings add yet more weight to the call for fundamental change on how the FOS operates.”
