FCA consults on widening FOS access for small businesses

FCA has opened a consultation on plans to provide more small businesses with access to FOS. The changes proposed would allow FOS complaints redress to approximately 16,000 SMEs, charities and trusts, by changing the eligibility criteria to access FOS.

Under the proposals, eligible businesses would be those that satisfy the following criteria:

• Under 50 employees;
• Annual turnover below £6.5 million; and
• Gross assets below £5 million.

If eligible, FOS would be able to consider a business’ complaints about any regulated activity, and certain unregulated activities as well.

The consultation closes on 22 April 2018, with a Policy Statement expected in summer 2018.