FCA consults on widening FOS access

Small businesses, trusts, and charities could soon become eligible to complain to the Financial Ombudsman Service (FOS), under new proposals unveiled by the FCA.

As the rules currently stand, only individuals and micro-enterprises are able to access FOS services if they have a dispute with a financial services firm, while other organisations are required to take action through the courts.

The new plans, which are open for consultation until 22 April 2018, would mean:

• Businesses become eligible if they have fewer than 50 employees, an annual turnover below £6.5m, and an annual balance sheet below £5m.
• Charities become eligible if they have income up to £6.5m, and trusts become eligible if they have assets up to £5m.

The changes are being driven by concerns about the accessibility of proper recourse for smaller organisations that lack resources but are excluded by current FOS eligibility rules.

If you are a newly affected charity or trust, or an investor in newly eligible SMEs, get in touch with the team to find out what this change could mean for you.