FOS Reform: New Powers to Dismiss Complaints and New Complaints Registration Stage

The Financial Ombudsman Service (FOS) is introducing major changes to how complaints are handled from October 2026 onwards. These reforms aim to make the redress system faster, clearer and more predictable for both consumers and financial firms.

1. What’s changing and when?

The FOS is rolling out a new phase of reforms, including:

• New powers to dismiss certain complaints (from 1 October 2026)

• A new registration stage before cases are allocated

• Clearer rules on how decisions are made

• Joint thematic reviews with the FCA

• Digital improvements to the complaints journey

These changes form part of a wider government‑backed overhaul of the UK financial services redress system.

2. New powers to dismiss certain cases

From October 2026, the FOS will be able to dismiss complaints that are not appropriate for its service. This includes:

• Cases better suited to court, law enforcement, or another dispute resolution body

• Complaints where there is no financial loss

• Complaints where there is no material distress or inconvenience

What this means for consumers: Only complaints with clear financial impact or meaningful distress will progress. This helps ensure faster resolution for cases that genuinely need Ombudsman involvement.

3. New registration stage for complaints

A new registration stage will be introduced next year. Its purpose is to:

• Confirm the complaint is within FOS jurisdiction

• Check the case is ready for investigation

• Reduce delays by ensuring caseworkers receive complete, appropriate files

• Support a fairer funding model, including future differential case fees

Client impact: Expect clearer upfront checks and potentially quicker allocation once a case is accepted.

4. Decisions based on standards at the time

The FOS will amend its rules to clarify that decisions are based on:

• The standards in place at the time of the act or omission

• Not on retrospective expectations

This aligns with proposed legislative changes to the FOS’s “fair and reasonable” remit.

Client impact: Greater predictability. Firms and consumers will know that historic decisions won’t be judged against modern standards.

5. Joint FOS/FCA thematic reviews

Later this year, the FOS will publish its first joint thematic review with the FCA. These reviews will:

• Highlight common complaint themes

• Show how the FOS approaches resolution

• Help firms improve their own complaint handling

• Reduce unnecessary escalation to the Ombudsman

Client impact: Better insight into how similar cases are treated and how firms can resolve issues earlier.

6. Part of a wider redress system overhaul

These reforms sit alongside other recent changes:

• Updated Memorandum of Understanding with the FCA

• Charges for professional representatives

• Adjusted interest rates on certain awards

• New online portals for businesses and consumers

• A redesigned online complaint form

• Government‑backed reforms progressing through the Financial Services and Markets Bill

7. What consumers should expect

• A clearer, more structured complaints journey

• Faster filtering of cases

• More transparency on how decisions are made

• Better digital tools for submitting and tracking complaints

8. What businesses should expect

• Earlier identification of cases outside FOS scope

• More predictable decision‑making

• Insight from thematic reviews to improve internal processes

• Stronger expectations around resolving issues before escalation

• Potential changes to case fees following consultation

9. Key takeaway

The FOS is moving towards a more streamlined, predictable and aligned complaints system. These reforms aim to reduce unnecessary escalation, improve consistency, and strengthen confidence in financial services.