meta_id 2971174

On 16 March 2026, the Financial Conduct Authority (FCA) and Financial Ombudsman Service (FOS) published Consultation Paper CP26/9, seeking feedback on proposals to modernise the United Kingdom's financial services redress system. The consultation follows work initiated by the Chancellor's Mansion House Speech in November 2024 and builds on earlier consultation CP25/22 published in July 2025. The proposals introduce significant structural and procedural changes to complaint handling and dispute resolution. Key proposals include: introducing a formal registration stage at the FOS with pre-registration and registration phases to ensure complaints are properly evidenced before investigation; amending dismissal grounds to enable the FOS to dismiss frivolous, vexatious, or abusive complaints and complaints where respondents have already reviewed matters in accordance with regulatory standards; and clarifying the fair and reasonable test by removing references to good industry practice and applying only standards applicable at the time of the alleged breach. The FCA has finalised separate policy positions on guidance clarifying when firms should report emerging redress issues under SUP 15, with thresholds including issues affecting 40 percent of customers, potential redress bills exceeding £10 million or 50 percent of annual revenue, and substantial individual consumer losses exceeding £10,000. The proposals also streamline Financial Services Compensation Scheme (FSCS) processes and improve operational efficiency across both bodies. The consultation period closes on 11 May 2026. Responses should be submitted via the FCA website or by post to the Redress Policy and Future Frameworks team at the FCA's London office. Respondents may indicate whether they consent to publication of their names and whether responses should be treated as confidential. The FCA and FOS intend to publish a further policy statement on all consulted proposals later in 2026.