In the Treasury white paper released today, the Government said it would be reviewing the governance and accountability of the FOS and the FSCS in light of the economic crisis.
The Government has stressed this review will not compromise either organisations’ independence or role in the regulatory system.
In addition the FOS will focus its next three-year review on its efficiency and effectiveness similar to the 2007 review of the FSA that the Treasury commissioned from the National Audit Office.
The paper says: “Although the recent challenges to financial stability have not impacted upon the role of the FOS in the same way as they have for the FSCS, the Government believes that it would be appropriate similarly to review the governance and accountability of the FOS to ensure that the arrangements remain fit for purpose under these new circumstances.
“To that end, the Treasury, the FOS and the FSA will review these issues, reporting towards the end of the year. Any resulting proposals will not, however, undermine or compromise the FOS’s independent position and role in the regulatory system.”