Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

FOS Unveils Streamlined Complaints Process After FCA Consultation

The Financial Ombudsman Service (FOS) has announced updates to its complaints process, aiming to make procedures clearer and more efficient. The changes follow a joint consultation with the Financial Conduct Authority (FCA).

The FOS has introduced an updated memorandum of understanding to align its decisions with FCA rules. Professional representatives will now be charged for referring cases, with the intention of ensuring fair costs and better-evidenced cases. Additionally, the interest rate applied to some awards will be amended to better reflect current economic conditions.

The FOS will update its rules so that decisions are based on the standards applicable at the time of the act or omission being complained about, rather than applying rules retrospectively. The organisation stated that this supports the government’s work regarding the ‘fair and reasonable’ remit.

From 1 October 2026, the FOS will have new powers to dismiss complaints that are not suitable for its process. This includes complaints that may be better resolved in court, by law enforcement, through another dispute resolution process, or where there has been no financial loss or material distress or inconvenience.

A new registration stage will also be introduced this year, following a consultation on differential case fees. This aims to ensure that complaints referred to the FOS are within its scope and ready for investigation. The registration stage is part of efforts to provide a fairer funding model and support earlier dispute resolution.

These changes may be relevant to UK letting agents and inventory clerks who interact with the FOS regarding property-related financial complaints, as the updated process could affect how cases are handled and resolved.