In an effort to enhance the transparency and predictability of its dispute resolution system, regulators in the U.K. are consulting on reforms to modernize its framework.
The U.K.’s Financial Conduct Authority (FCA) and the Financial Ombudsman Service are both seeking input on proposals to improve the customer redress framework to speed up the resolution of complaints, and to give industry firms greater certainty.
Among other things, the proposed reforms aim to improve the operational efficiency of the ombudsman and the industry compensation fund, and to help firms deal with looming issues that are likely to cause consumer harm by identifying “potentially significant or emerging redress events” earlier, and alerting the FCA.
“We want to achieve greater predictability, certainty and transparency, with appropriate responsibility for firms to identify and address redress issues early on,” the regulator said in its consultation.
At the same time, the Financial Ombudsman is also seeking input on the proposed introduction of a new process to ensure that all of the complaints referred to the service are within its jurisdiction, and are ready to be investigated, from the outset.
The ombudsman’s proposals aim to ensure that it “can resolve complaints more quickly and informally, leading to faster and more consistent resolutions, reduced delays and improved outcomes for all parties,” it said — and to encourage firms to resolve issues proactively.
The proposals are out for comment until May 11.
The FCA said that it aims to finalize its policies later this year.