The FCA’s review of the long-stop has been put on hold until issues with a European directive are resolved, says FCA chief executive Martin Wheatley.
Speaking at the FCA’s annual public meeting in London today, Wheatley said discussions over whether to place a 15-year limit on complaints to the Financial Ombudsman Service “cannot move forward” at the moment.
He says under the alternative dispute resolution directive, a long-stop may be deemed a constraint on consumer rights.
Wheatley says: “The issue has become slightly more complicated because there is a European directive which looks at the extent to which a long-stop would be a constraint on consumer rights.
“Until we can clarify that we cannot move forward.”
Wheatley denied the proposal had been shelved.
In the FCA’s 2014/15 business plan, published in March, the regulator said it would consider the case for a 15-year long stop.
Member states have until 9 July 2015 to comply with the alternative dispute resolution directive.
The directive means consumers will also have one year, rather than six months, from receiving a firm’s final decision to submit a complaint to the FOS.