FCA opens survey on SME thresholds for FOS insurance complaints

The 2019 rules, following a consultation in 2018, were designed to give ombudsman access to SMEs that probably did not have enough money to fight through the courts.

Previously, only individual consumers and micro-SMEs with fewer than 10 employees and turnover of under €2m (£1.75m) could go to the FOS. However, after the change this was widened to SMEs with turnover of under £6.5m and fewer than 50 employees.

The FCA had planned to review the rules after two years, but this was postponed due to the Covid-19 pandemic.

The watchdog detailed that, along with the insurance complaints, there have also been 2,891 banking services complaints in a total of 4,782 from the expanded eligible SME pool.

Input

The FCA listed that it would also be reviewing payments for SME complaints, and the number of SMEs engaging with financial services, as it opened the call for input.

The regulator confirmed its aim was to “understand whether current thresholds for SMEs to be able to refer complaints to the ombudsman service continue to be appropriate according to our policy objective”.

According to the regulator, regulated firms dealing with SMEs, as well as SMEs and their representatives, should be among those interested in the review as it urged them to get involved.

Survey date

The survey is open until 28 April, with the FCA committing it “will analyse the feedback and publish our response, which will include whether or not we propose to carry out any further work”.

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