Looking forward, it can be expected that the pandemic could act as a catalyst for the 'fair and reasonable' approach being more readily applied by firms at the initial complaints-handling phase and an acceleration in the shift, that many financial services firms have already started to embed, around 'doing the right thing'.
In some cases, firms may feel that the Fos expects more than the FCA would.
To some degree that may be right, particularly as the Fos's decision-making powers is based on what the relevant ombudsman considers is fair and reasonable under the cirucmstances, rather than to decide cases as if it were the FCA.
However, advisers may also want to consider that, in practising improved complaints-handling and embracing the right mentalities and culture, this not only helps to achieve regulatory compliance, and better reputational standing, but it may also prevent the risk of mass Fos complaints arising from systemic failures which could threaten a firm's solvency and, ultimately, lead to re-structuring and FSCS claims.
It follows that the case for firms and advisers to ensure that their own complaints-handling systems are best in standard and even more customer-centric is a compelling one - both from a regulatory and business commercial perspective.
Jonathan Cavill and Anthony Harrison are contentious regulatory and redress specialists at Pinsent Masons
