Creating a Redress System that Works Better for Consumers and Firms

Why It Matters

A more efficient redress framework reduces delays and uncertainty for consumers while providing firms with predictable regulatory pathways, strengthening confidence in the UK financial services market and supporting broader governmental reform goals.

Summary

The FCA announced a joint initiative with the Financial Ombudsman Service and the UK government to modernise the financial redress system, introducing a new complaint registration stage, updated dismissal grounds and clearer guidance on the fair‑and‑reasonable test. The reforms aim to deliver faster, more predictable outcomes for consumers and give firms clearer expectations on escalation and information requirements. By assessing potential harm across markets rather than just consumer counts, the changes seek earlier identification of systemic issues and quicker regulatory action. Overall, the overhaul is designed to improve alignment, transparency and consumer protection while giving firms greater certainty to invest and compete.