The FCA and the Financial Ombudsman Service 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. Find out how to give your feedback.
Read the Call for Input (PDF)[1]
Why we're asking for input
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 (we describe these 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 we 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 we could make to the redress framework to enable us to better identify and manage mass redress events to ensure better outcomes for consumers, firms and the market.
- What changes could be made to how we work together to ensure our views on regulatory requirements are consistent.
We have updated our Memorandum of Understanding[2] with the Financial Ombudsman Service to improve how we work together on important issues. We will also give consumer and industry stakeholders more direct channels of communication with members of the Wider Implications Framework[3].
Who should read this publication
This call for input will primarily interest:
- consumers and groups representing consumer interests
- policy makers and other regulatory bodies
- firms and industry bodies
We also want to hear from:
- industry advisers and consultancies
- experts and commentators
- academics and think tanks
- PRs to consumers making complaints
Next steps
The deadline for you to provide views is 30 January 2025.
Or by email to: [email protected]
Or in writing to:
Redress & CMC Policy Team
Financial Conduct Authority
12 Endeavour Square
London E20 1JN
We will summarise the responses and publish next steps in the first half of 2025.
Privacy statement
We may be required to publish or disclose information, including confidential information, such as your name and the contents of your response if required to do so by law, for example under the Freedom of Information Act 2000, or in the discharge of our functions. Please note that we will not regard a standard confidentiality statement in an email message as a request for non disclosure.
By responding to this publication, you are providing personal data to both the FCA and the Financial Ombudsman Service, including your name, contact details (including, if provided, details of the organisation you work for) and opinions expressed in your response. We will process personal data to inform our work as regulator and in reviewing and developing complaints handling rules and policy, both in the public interest and in the exercise of our official authority under FSMA. Any information you provide in response to this publication will be shared with the Financial Ombudsman Service to assess your response, support FCA’s ongoing regulatory policy development, enable a review of existing rules and practices on complaints handling, and enable cooperation between the FCA and the Financial Ombudsman Service.
Further information about the FCA’s use of personal data, including the legal basis for using it, can be found in our privacy notice[5]. Further information about the Financial Ombudsman Service’s use of personal data, including the legal basis for using it, can be found in its privacy notice[6].