New measures to modernise and transform the UK redress system

The Financial Ombudsman Service and the Financial Conduct Authority (FCA) have announced new measures intended to modernise and transform the UK redress system, in a news item dated 16 March 2026¹. The two bodies said the changes are aimed at strengthening the system so consumers get fair and quick compensation when things go wrong, and so businesses have more certainty to invest, grow and compete¹.

The announcement was published under the Financial Ombudsman Service's press release, redress, and consultations and responses categories¹. The service has not set out, in the material published so far, which specific rules or processes will change, what the measures will cost, or the date they take effect; those details have not been reported¹.

The 16 March 2026 item sits alongside other recent work by the service. On 13 January 2026 it published proposed targets for resolving cases in 2026/27, with a consultation closing on 21 January 2026¹. On 27 November 2025 it set out plans for the following year, saying the continuous delivery of changes and improvements to its service would be a key focus for 2026/27 as it launched a consultation on its Plans and Budget¹.

Separately, the service consulted on proposals to charge Claims Management Companies and professional representatives, including the amount of the fee and how it would work; that consultation closed on 4 July 2024¹. It has also advertised roles in its casework, HR, Legal and IT teams¹.

Why it matters for households

The redress system is the route consumers use when a financial firm has treated them unfairly and they want compensation without going to court. The Financial Ombudsman Service decides individual complaints against firms, while the FCA sets the rules firms must follow and can require whole sectors to pay compensation through redress schemes.

Anyone with a live or future complaint is affected by how quickly cases are decided and how awards are calculated. The service's own targets for 2026/27 concern how long cases take to resolve¹, and its published guidance covers time limits for bringing a complaint and how much compensation it can award. Where a firm has failed financially, the Financial Services Compensation Scheme may pay instead, which is a separate route from the ombudsman.

The 16 March 2026 announcement does not state which consumers will see a change in their own case, or from what date¹. The service has said the aim is fair and quick compensation and more certainty for businesses¹; the practical effect on waiting times and outcomes has not been reported¹.

What happens next

No next steps for the redress measures have been published beyond the 16 March 2026 announcement itself¹. The service's consultation on its 2026/27 targets closed on 21 January 2026¹, and its consultation on charging Claims Management Companies and professional representatives closed on 4 July 2024¹.