Review of the powers of the Financial Ombudsman Service and new memorandum of understanding with FCA
As part of the Mansion House measures, the government has launched a consultation aimed at reviewing and reforming the Financial Ombudsman Service (FOS) framework to ensure that dispute resolution for financial services remains swift, impartial, and effective. This review is driven by evolving market conditions, digitalisation, and industry as well as consumer feedback, which have exposed inconsistencies in the current system. The main concerns relate to (i) the unpredictability of the FOS’s redress outcomes and (ii) the lack of alignment between the FOS and the FCA.