07 Jan 2025 | Posted In Money advice news

The Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS) want to seek views from stakeholders on how to modernise the redress framework, so it better serves consumers and provides greater stability for firms to invest and innovate.

The current redress framework works well for individual customer complaints about specific issues. However, challenges can occur when there are large numbers of complaints about the same issue (described as ‘mass redress events’). These challenges can be compounded if firms do not identify issues early or do not proactively address harm where it occurs.In this joint call for input FCA and FOS want to hear from stakeholders to better understand:

  • How the current redress framework could be modernised.
  • The problems that mass redress events and the redress scheme in general cause firms, consumers and their representatives.
  • What changes could be made to the redress framework to enable better identification and management of mass redress events to ensure better outcomes for consumers, firms and the market.
  • What changes could be made to how FCA and FOS work together to ensure views on regulatory requirements are consistent.

This call for input will primarily interest:

  • consumers and groups representing consumer interests
  • policy makers and other regulatory bodies
  • firms and industry bodies

They also want to hear from:

  • industry advisers and consultancies
  • experts and commentators
  • academics and think tanks
  • PRs to consumers making complaints

The deadline for submissions is 30 January 2025.

Find out more and submit a response here.

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