The FCA and Financial Ombudsman Service are seeking views on proposals to modernise the redress framework, to better serve consumers and give firms greater certainty to invest and innovate.
Our strategy (PDF) recognises that the current redress regime can create uncertainty for consumers, firms and investors.
We want to achieve greater predictability, certainty and transparency, with appropriate responsibility for firms to identify and address redress issues early on.
This paper follows our November 2024 joint Call for Input (PDF) and July 2025 consultation (PDF) with the Financial Ombudsman.
We are finalising a number of the proposals we consulted on:
We are also seeking views on further changes possible within the existing framework, including proposed updates to the fair and reasonable test and to the dismissal grounds. The Financial Ombudsman is also seeking views on the introduction of a complaints registration stage to ensure that all complaints referred to the Financial Ombudsman are within its scope and ready to be investigated before being allocated a caseworker and businesses are charged.
The proposals seek to ensure that the Financial Ombudsman can resolve complaints more quickly and informally, leading to faster and more consistent resolutions, reduced delays and improved outcomes for all parties. The proposals will also encourage earlier proactive resolution of issues by firms.
The Treasury has also published the outcome of its review into the Financial Ombudsman, which should be read alongside this paper.
Our Memorandum of Understanding (PDF) with the Financial Ombudsman sets out how we work together on important issues.
Our proposals are relevant to all consumers, firms and professional representatives involved in financial services where redress may be due.
The proposals and finalised policy positions will also be of interest to policymakers in other regulatory bodies, industry advisers, consultancies, academics and think tanks, experts and media commentators.
The Financial Ombudsman welcomes views on their proposals in Chapter 2 by 11 May 2026.
You can send comments to us using our online response form, or in writing to: Redress Pathways and Risk Team, Financial Conduct Authority, 12 Endeavour Square, London E20 1JN
Email: [email protected]
We aim to publish another Policy Statement on all the proposals consulted on later in 2026.