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Review of rules extending SME access to the Financial Ombudsman Service

Updated: Oct 27, 2023

On 24 October 2023, the FCA published a Feedback Statement regarding thresholds for SMEs to be able to refer complaints to the FOS.


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Back in 2018 the regulator made rules extending access to the Financial Ombudsman Service (FOS) for more small and medium-sized enterprises (SMEs) with a turnover of less than £6.5 million and fewer than 50 employees, or a balance sheet total of less than £5m.


The objective was to provide FOS access to these SMEs thought unlikely to have sufficient resources to resolve disputes with financial services firms through the legal system.


When the rules came in to force on 1 April 2019 the thresholds at the time covered 99% of the 5.6 million private sector businesses in the UK. Due the impact of the global Covid-19 pandemic however a delayed review of the impact of these rules was finally launched in March this year.


In carrying out the review, the FCA wanted to understand whether the eligibility criteria for SMEs to be able to refer complaints to the FOS remain appropriate to its policy objective.


Over 150 responses were received to the review's call to input. Responses were mixed but in light of all the responses received the FCA confirmed that:

  • It remains of the view which it shared when it made the rules that, in general, larger SMEs have the bargaining power, organisational resources and understanding of financial services to protect their interests in disputes with firms.

  • Its policy objective remains the same as when it made the rules extending access to the FOS for SMEs.

  • Overall, the threshold criteria for SMEs to be able to refer complaints to the FOS remain appropriate.

Read the full findings from the review on the FCA website.


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