Financial Conduct Authority outlines changes to modernise the redress system including a new complaints registration stage and updated dismissal grounds

In a blog post, the Financial Conduct Authority set out a package of changes it is taking, alongside the Financial Ombudsman Service and the Government, to modernise the UK redress system so consumers receive fair outcomes more quickly and firms have greater clarity on how issues will be handled. The FCA said it is acting within its current powers to improve day-to-day operation of the system, including introducing a new registration stage for complaints, updating dismissal grounds and providing clearer guidance on the fair and reasonable test. The FCA framed the changes as improving alignment, predictability and early engagement across the system while maintaining consumer protection. It also described an update to how it assesses potential harm, adding consideration of the number and makeup of firms affected across a market or multiple markets rather than relying solely on the number of consumers impacted, with the aim of identifying issues earlier and supporting more timely regulatory action. Firms’ responsibilities to handle complaints fairly and promptly remain unchanged, and the Financial Ombudsman Service will continue to operate independently in making fair and reasonable decisions in individual cases. The FCA said it will continue to work with the Financial Ombudsman Service and the Government on the Government’s broader reforms to the redress framework.