Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
The Financial Ombudsman Service (FOS) has announced the next phase in a series of reforms designed to streamline and modernise its complaints process. These changes follow a joint consultation with the Financial Conduct Authority (FCA).
The reforms include an amendment to FOS rules to clarify that decisions are based on the standards applicable at the time of the act or omission being complained about, and will not be applied retrospectively. This amendment is intended to provide a foundation for proposed legislative changes to the ‘fair and reasonable’ remit, which are currently progressing through Parliament.
Additionally, the FOS will introduce new powers to dismiss complaints that are not appropriate for its service and may be better resolved, or are already being investigated, through other means. This includes complaints more suited to court, law enforcement, or another dispute resolution process, or where there has been no financial loss, or material distress or inconvenience. These powers will take effect from 1 October 2026.
A new registration stage for complaints will also be introduced next year, following a consultation on differential case fees later this year. This stage aims to ensure that complaints referred to the FOS are within its scope and ready to be investigated before being allocated to a caseworker. The FOS states that this will support a fairer funding model and help resolve disputes earlier.
These reforms are relevant to UK letting agents and inventory clerks who may interact with the FOS in the course of handling property-related complaints, as the changes could affect how and when complaints are considered by the service.
Source: Mortgage Strategy