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The Financial Conduct Authority (FCA) has published proposals to strengthen the redress system, ahead of the outcome of its joint consultation with the Financial Ombudsman Service that ran last year. ‘Modernising the redress system’ ran from July to October 2025; the FCA has said it will publish next steps after reviewing responses, so final rules and implementation timing are still to come.
This week’s update contains further proposals so consumers get fair and quick compensation when things go wrong, and businesses have more certainty to invest, grow and compete. Views are being welcomed before 11 May 2026.
Proposals include a new registration stage for complaints, updated dismissal grounds and clearer guidance on the fair and reasonable test. The changes have been designed to:
- help firms address harm early and resolve issues more effectively and proactively
- enable firms to escalate major or emerging redress issues earlier so they can be resolved quickly
- speed up complaint resolution by enabling the Financial Ombudsman to work more efficiently.
The government has also published the outcome of its review into the Financial Ombudsman, which should be read alongside the consultation paper.
If members would like to share their views, email [email protected].
