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The Financial Ombudsman Service (FOS) has confirmed reforms to modernise the complaints process, with several of the changes reflecting priorities raised by the BVRLA during consultation.
A key BVRLA ask was for broader powers to dismiss complaints that are frivolous, vexatious, duplicated or better suited to another route. FOS will proceed with much of this package, with new dismissal rules taking effect from 1 October 2026. The association also called for a new registration stage to help identify bulk claims management company complaints and cases outside the Ombudsman's jurisdiction before they progress further. This has also been confirmed, with pilots beginning in October ahead of wider rollout.
There has also been movement on case fees. The BVRLA called for firms not to incur case fees where complaints are dismissed, withdrawn or resolved before registration. The principle has been recognised, although the detailed charging arrangements will be considered through a separate FOS consultation expected later this year.
FOS will also amend its rules to clarify that decisions are based on the standards applicable at the time of the act or omission being complained about, rather than applying newer standards retrospectively. Further reform of the Fair and Reasonable test, including the BVRLA's call to remove the reference to 'good industry practice', has been put on hold pending the passage of the Financial Services and Markets Bill.
Another BVRLA priority – introducing a long-stop for historic complaints – remains with Parliament. The association called for a six-year limit aligned with data retention requirements, while the Financial Services and Markets Bill currently proposes a ten-year period.
The BVRLA will continue to engage as the remaining reforms progress and will keep members updated on the case fee proposals, Fair and Reasonable test and long-stop arrangements.
FOS policy statement: Modernising the Redress System
FOS Factsheet: Modernising Redress Factsheet August 2026
BVRLA Modernising the Redress System Wins
