Friday, November 27, 2020
Final week, the Monetary Conduct Authority (FCA) and the Monetary Ombudsman Service (FOS) launched correspondence during which the FCA sought reassurance from the FOS in relation to the way it intends to deal with complaints about monetary corporations throughout the COVID-19 pandemic.
In a letter from Sheldon Mills (Interim Government Director of Technique & Competitors on the FCA), dated 16 November 2020, the FCA requested the FOS to verify that that it’ll proceed to “think about complaints primarily based on the circumstances on the time”. It additionally requested the FOS to affirm that it might decide what’s “truthful and affordable in all of the circumstances of the person case” and to take into consideration “the operational challenges confronted by corporations throughout this era…the FCA’s revised expectations of what constitutes compliance…[and]…what counted nearly as good business apply on the time”.
The request for clarification follows the Authorities’s announcement of additional measures meant to regulate the unfold of COVID-19, and the FCA’s subsequent additional non permanent measures “designed to make sure corporations can work at tempo, and underneath tough circumstances to assist their clients”.
Mr Mills famous that the FCA desires to supply reassurance to monetary providers corporations that FOS will think about complaints primarily based on the circumstances on the time, to make sure that corporations “reply positively” to the FCA’s additional measures, and that “shoppers get the assistance they want”.
Caroline Wayman (Chief Government and Chief Ombudsman on the FOS) responded on behalf of the FOS, in a letter dated 17 November 2020. Ms Wayman thanked the FCA for persevering with to work carefully with the Ombudsman and said that the FOS “perceive that monetary companies are dealing with unprecedented challenges”.
Ms Wayman confirmed that the FOS continues to make choices inside the framework set out in statute, the FCA’s personal guidelines, and what the Ombudsman considers to be good business apply on the time. Ms Wayman said that she is assured this “ought to give monetary companies the understanding that complaints might be handled pretty”.
Ms Wayman additional confirmed that the FOS doesn’t “make choices with the good thing about hindsight” and that, when making choices, it might take into consideration all of the elements Mr Mills outlined in his letter, together with the FCA’s revised expectations of what constitutes compliance with its guidelines.
The letter additionally notes that the FOS will “interact with corporations straight on the problems affecting them” and corporations are inspired to contact the FOS’s Technical Recommendation Desk for casual help.
This correspondence offers reassurance for monetary providers corporations, who will welcome the acknowledgement from each the FCA and the FOS of the challenges they face throughout the pandemic.
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