View more on these topics

Budget 2018: Govt welcomes plans to open FOS to SME complaints

Pound sign economics road direction sign conceptChancellor Philip Hammond has said the government welcomes the FCA’s plans to grant access to the Financial Ombudsman Service for small and medium-sized firms.

This comes two-weeks on from the regulator’s announcement of its plans to hike up the FOS limit by £200,000 to £350,000.

In today’s Autumn Budget, Hammond says the plans in place to extend access to the ombudsman for SMEs are underway, and that “FOS will now take steps to ensure they have the necessary skills and processes in place to handle these new cases”.

SMEs with an annual turnover below £6.5m and with fewer than 50 employees, or an annual balance sheet under £5m can refer unresolved complaints to the ombudsman as of this month.

The plans will allow an estimated 210,000 more firms to seek redress with the ombudsman.

Under previous rules, businesses had to meet a turnover, headcount and balance sheet total before they could take a claim as a business, not an individual, to FOS.

Hammond today says he expects banks to repond to another report produced on how SMEs can best resolve disputes – including a recomendation from former director general of the Institute of Directors Simon Walker that SMEs outside the FOS remit but below £10 million turnover, should have a separate voluntary regime to look at unresolved complaints from the past.

Recommended

18

FCA plans to hike FOS compensation limit by £200,000

The FCA has published a consultation on proposals to hike the maximum compensation amount the Financial Services Ombudsman can require firms to pay. Raising the maximum amount of compensation would see the cap increase from £150,000 to £350,000. Adviser and wealth manager trade body Pimfa has already criticised the proposals arguing they could lead to […]

Boardroom-Hire-Hiring-Appointment-General-700x450.jpg
2

FOS: We’re ready to take on a wider workload

Financial Ombudsman Service chief executive Caroline Wayman has told the FCA the complaints body would be ready to take on claims from small businesses, charities and trusts. Attending an FCA board meeting from 25-26 July, Wayman said that the FOS had already been preparing to take on potential new responsibilities, and was confident the complaints […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. I wonder if this is aimed at the way Banks treat SME

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com