HM Treasury has presented to Parliament the Financial Regulators Complaints Commissioner’s annual report and accounts for the year ended 31 March 2026, together with responses from the Financial Conduct Authority and the Prudential Regulation Authority. The report says the complaints caseload has shifted toward larger and more complex cases, mainly involving the FCA’s oversight of firm failures and historic supervisory decisions. Across all regulators, the Commissioner closed 650 complaints and enquiries, investigated 210 allegations and upheld 24, with most closed cases concerning the FCA. The report highlights a concluded British Steel Pension Scheme group complaint in which the Commissioner upheld the allegation that the FCA had been behind the curve in anticipating, preventing and responding to widespread unsuitable transfer advice, while also pointing to wider limits in capital and professional indemnity insurance as safeguards against large-scale mis-selling. It also records that the FCA accepted the Commissioner’s recommendation to lift the time bar and investigate complaints about its regulation of peer-to-peer platform The House Crowd, after the Commissioner found the time limit had been applied too rigidly. Other themes included the limited scope for compensation under the complaints scheme, misunderstandings about the FCA’s role in overseeing the Financial Ombudsman Service, confidentiality constraints, fee-related complaints from small firms, handling of vulnerable complainants and delays caused by deferrals in complex cases. The Commissioner reported 34 remedies for FCA cases and said the FCA did not accept three recommendations, including on compensation and BSPS-related findings. Looking ahead, the Commissioner said seven group complaints involving 349 complainants remained open and that more complex and group cases are expected. She intends to write to the FCA for further assurance on peer-to-peer lending oversight, while the office is increasing investigative capacity as expenditure is expected to rise with the growing caseload.
HM Treasury2026-07-15
HM Treasury presents Complaints Commissioner annual report showing more complex FCA oversight cases, 24 upheld allegations and disputes over BSPS findings
HM Treasury has presented the Financial Regulators Complaints Commissioner’s 2025-26 annual report and the regulators’ responses. The report says complaints are becoming more complex and increasingly focused on the FCA’s supervision of firms, with 24 of 210 allegations upheld and major findings on BSPS and peer-to-peer lending complaints. The FCA accepted most recommendations but disputed key points on BSPS and compensation.