As part of a policy paper issued on 17 March, the Government is launching a review of the Financial Ombudsman Service (FOS) and whether it is fulfilling its role as a dispute resolution service instead of acting as a ‘quasi-regulator’. This comes as part of the Chancellor Rachel Reeves’ ‘Action Plan’ to review the UK’s wider approach to regulation. The Economic Secretary to the Treasury will examine whether the FOS, as it stands today, is delivering its role as ‘a simple, impartial dispute resolution service which quickly and effectively deals with complaints against financial services firms and which works in concert with our Financial Conduct Authority (FCA) which regulates the sector’. The Economic Secretary will focus, in particular, on a range of points that have been raised as part of the Government’s consultation on the growth and competitiveness strategy. This will include addressing concerns around: The framework in which the FOS operates which has resulted in it acting, at times, as a quasi-regulator. Whether the FOS is applying today’s standards to actions that have taken place in the past. The practices that have grown up over time on compensation. Rachel Reeves stated: “By cutting red tape and creating a more effective system, we will boost investment, create jobs and put more money into working people’s pockets.” The FOS welcomed the review, citing it would “build on the work we are currently carrying out with the FCA to improve the dispute resolution system in the UK, so it is fit for a modern economy. We are committed to ensuring we have a modern redress framework in which to operate so we can provide the best service to consumers, small businesses and financial services firms.” For further information on the policy paper, please refer to the link.