The FCA and the Financial Ombudsman Service has today published further detail to help consumers and the financial services industry understand how complaints around the new targeted support regime will be handled.
Readers can access that FCA and FOS Statement using the following link: https://www.fca.org.uk/publication/corporate/joint-statement-fca-fos-targeted-support.pdf
Phil Smith, Senior Actuarial Consultant at leading independent financial services consultancy Broadstone, commented:
“Firms will naturally be cautious about how consumer complaints following the new targeted support rules will be treated by the regulator. The proactive statement from the FCA and FOS aims to give firms greater confidence. The statement underscores that suitability assessments for targeted support will be based on the design of consumer segments rather than at an individual level and will not be judged using the benefit of hindsight, helping firms innovate without fear of a disproportionate redress risk.
“The statement indicates that if the Financial Ombudsman identifies an issue with wider implications that relates to the interpretation of FCAs rules on targeted support, it may seek a view from the FCA and consider how redress could potentially be assessed.
“This collaborative approach demonstrates a constructive effort by regulators to balance consumer protection with innovation, enabling firms to offer meaningful support that fills gaps between general guidance and full advice. As the regime develops, ongoing engagement and clarity on these boundaries will be vital to ensure that targeted support delivers tangible benefits for everyday investors while maintaining robust safeguards.”
