FCA plans to give small businesses access to the Financial OmbudsmanMake Text Bigger
The Financial Conduct Authority (FCA) has instigated a consultation to give small businesses access to the Financial Ombudsman Service following a review of the protections available to SMEs as users of financial services.
At the moment only individual consumers and approximately five and a half million micro enterprises can access the Ombudsman if they have a dispute.
The Ombudsman will be potentially able to consider complaints about regulated activity and also about some unregulated activities such as lending to companies.
Could this be good news for landords and in particular incorporated landlords?
Chief Executive at the FCA, Andrew Bailey, said:
“It is important for everyone, including financial services firms, that there is an effective dispute resolution mechanism for businesses. Our evidence suggests some small businesses currently find it hard to achieve a fair outcome in disputes with financial services firms because court action is not a realistic option for them. We have considered what could be done within our powers and the remit of the Financial Ombudsman Service to improve this situation and are proposing to expand access to the Ombudsman.”
The FCA is requesting responses to the consultation by 22/04/2018 and will publish a Policy Statement detailing final rules in summer 2018.
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