How to register with the Financial Ombudsman Service

If your business offers financial services and is authorised by the Financial Conduct Authority (FCA), you are legally required to register with the Financial Ombudsman Service (FOS). This registration is essential for compliance and ensures your customers have access to a free, independent body to settle disputes if they are unhappy with how you have handled their complaint. Getting this sorted is a key step in running a trustworthy and professional financial business.

Who needs to register?

Registration with the FOS is mandatory for any business, regardless of size, that engages in activities regulated by the FCA. This includes a wide range of firms, such as:

• Financial advisers
• Insurance brokers and providers
• Consumer credit firms (e.g., offering loans, hire purchase, or certain payment services)
• Mortgage brokers
• Investment firms
• Banks and building societies

In simple terms, if the FCA has authorised you to conduct business, you almost certainly need to be covered by the FOS scheme.

How to register

The good news is that the process is usually straightforward and integrated with your FCA application. You don't typically have to complete a separate, standalone registration with the FOS.

1. FCA Authorisation is Key: Your registration with the FOS is handled as part of your application for authorisation with the FCA. When you apply to the FCA, they will gather the necessary information about your firm.
2. Information is Passed On: Once the FCA approves your application and your firm becomes authorised, they will automatically pass your details to the FOS. This action officially registers you with the ombudsman scheme.
3. Pay Your Fees: Your business will be required to pay an annual levy to the FOS. The amount varies depending on the type and size of your business. This, along with potential case fees if a complaint is referred, is a standard cost of operating a regulated business.

What this means for your business

Being registered with the FOS means you must have a clear, fair, and efficient internal complaints procedure that meets their standards. This is the most important practical change for your day-to-day operations.

Your procedure must:

• Acknowledge complaints promptly: Let the customer know you have received their complaint and are looking into it.
• Investigate fairly: Conduct a thorough and impartial investigation into the issues raised.
• Issue a 'Final Response': You have up to eight weeks to send the customer a final response letter. This letter must clearly state your decision and the reasons for it. Crucially, it must also inform the customer of their right to take their complaint to the Financial Ombudsman Service within six months if they remain dissatisfied.

Your goal should always be to resolve complaints directly with your customer first. The FOS is there as a final step, and resolving issues internally is always better for building strong customer relationships.