The Finance & Leasing Association (FLA) has welcomed measures designed to improve consistency and predictability within the UK’s financial complaints system.
The reforms from the Financial Ombudsman Service confirm that complaints will be assessed against the rules and standards in force at the time of the relevant event.
The FLA says this should give financial services firms greater confidence that complaints will not be determined using retrospective interpretations of regulatory requirements.
It believes the changes represent an important step towards creating a fairer and more transparent redress framework for consumers and finance providers.
GREATER CERTAINTY FOR FIRMS
The trade body has consistently called for reforms that provide greater certainty, accountability and consistency when complaints are considered.
Concerns about unpredictable or retrospective decision-making have become increasingly important for lenders because potential redress liabilities can affect risk appetite, funding decisions and firms’ willingness to serve parts of the market.
The FLA argues that consumers and businesses both benefit from a framework that produces clear and predictable decisions while ensuring customers receive appropriate support when problems arise.
FURTHER REFORMS EXPECTED
Shanika Amarasekara MBE (main picture), CEO of the Finance & Leasing Association, says: “Today’s announcement is an important step towards a more consistent and predictable redress system. The FLA has long called for reforms in this area and will continue to work with the Financial Ombudsman Service to support their implementation.
“We also look forward to further reforms that improve confidence, transparency and certainty across the wider redress framework.”
