Fair4All Finance responds to three consultations on FOS reform and redress modernisation

Fair4All Finance, a financial inclusion body, published its responses to three consultations on the Financial Ombudsman Service and the UK's redress framework on 18 November 2025¹. The responses cover a Treasury review of the ombudsman, a joint consultation on modernising the redress system from the Financial Conduct Authority and the ombudsman, and the ombudsman's consultation on its future funding model¹.

On the relationship between the two regulators, the body said it supports proposals for closer alignment between the ombudsman and the Financial Conduct Authority, including clearer mechanisms for referring questions of rule interpretation or issues with wider implications¹. It also welcomed plans for greater transparency, including thematic guidance from the ombudsman on how cases are assessed, and said the current statutory obligation to publish individual determinations should be maintained¹.

The body said it supports a "lead complaints" process for novel or significant issues and a new registration stage at the ombudsman to improve efficiency, provided safeguards protect access to redress for vulnerable consumers¹. On funding, it supports differentiated case fees reflecting the complexity and stage of each complaint, and urged reduced case fees for small-sum loans under £1,000 and a broader exemption for Community Finance Organisations¹.

The three responses were submitted in September and October 2025, according to the dates on the published documents: the Treasury review response in September 2025, the joint modernising the redress system response in September 2025, and the funding model response in October 2025¹.

Why it matters for households

The ombudsman is the free dispute resolution service for consumers with complaints about financial firms, and its funding model shapes how much firms pay when a case is brought against them¹. Fair4All Finance argues that reduced case fees for small-sum loans and an exemption for Community Finance Organisations would make it more viable for responsible lenders to offer affordable credit products¹. The proposals it supports, including a lead complaints process and a registration stage, are described as measures to streamline case handling and reduce operational burdens for firms, subject to safeguards for vulnerable consumers¹. The consultation responses themselves do not change the rules; they set out one organisation's position ahead of decisions by HM Treasury, the FCA and the ombudsman¹.

What happens next

Fair4All Finance said it looks forward to continuing to work with HM Treasury, the FCA and the ombudsman to help shape a redress system that supports financial inclusion and sustainable market growth¹. No dates for decisions on the three consultations have been reported¹.