FS Sector Strategy: Review of the Financial Ombudsman Service
Read the full outcome
Detail of outcome
This document provides a summary of the key themes raised by respondents in response to the questions in the consultation and notes the government’s final policy position on the Financial Ombudsman Service (FOS) reforms. The government has brought forward primary legislation to deliver the reforms as part of the Financial Services and Markets Bill.
The document was amended on 18 May 2026 to remove original paragraph 2.19, which set out the government’s intention to take a power allowing it to specify, in the future, that particular rules should be treated differently under the adapted ‘fair and reasonable’ test. Following further assessment and feedback, the government no longer considers this power necessary and it is not included in the Bill.
Original consultation
Consultation description
This consultation sets out the findings and proposed reforms following the Economic Secretary’s Review of the Financial Ombudsman Service (FOS), which was announced in March in the government’s Regulation Action Plan.
The consultation propose a package of reforms to the legislative framework in which the FOS operates. These are designed to stop the FOS acting as a quasi-regulator and ensure that the FOS is delivering its role as a simple, impartial dispute resolution service.
These reforms are intended to provide greater certainty and predictability for consumers and firms who use the FOS.
Documents
Updates to this page
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paragraph 2.19 removed from consultation outcome document.
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Consultation response added.
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First published.