We have responded to the FCA and Financial Ombudsman Service consultation on proposals to modernise the UK’s redress system. A well-functioning, transparent system for resolving complaints is essential to building trust in financial services and enabling innovation in products that meet the needs of financially excluded consumers.

We broadly welcome the proposed reforms, particularly the introduction of a new registration stage to improve the efficiency and consistency of complaint handling. We believe this can help streamline processes and identify issues earlier, provided it is designed with accessibility at its core. 

It is critical that any changes do not create additional barriers – especially for consumers in financially vulnerable circumstances – and that flexibility, clear guidance and appropriate support are built into the system.

Our response also supports measures to improve clarity and finality in decision-making, including the ability for the Financial Ombudsman to dismiss certain complaints. However, we emphasise that these powers must be used proportionately and transparently, with strong safeguards to ensure that consumers are not excluded from redress. We highlight the importance of staff training, clear communication, and robust monitoring to ensure fair outcomes.