Firms will also note the Fos's most recent strategy paper which sets out its approach over the next five years; a key part of which is to build on the work it has already done to proactively prevent complaints to stop unfairness coming about in the first place.
In that regard, financial services businesses may also see significant benefits in taking a 'prevention over cure' approach by looking to prevent complaints from occurring, by acting fairly and reasonably in the first instance.
It can also be expected that there will be more joined up thinking between the Fos and the FCA now and in the future, particularly given the focus on cross-sector trends in the Fos' latest business plan, where it has identified financial hardship as a particular trend; noting the FCA’s work in this area, as well as the challenges of persistent debt and indebtedness, particularly in the use of high-cost credit.
Issues around indebtedness and financial hardship will naturally become an increasingly prominent issue given the current circumstances, and it is likely the Fos will draw on current FCA Covid-19 guidance in future when reaching adjudications and decisions in this and other areas.
This lock-step approach has also been reflected in the numerous platforms that the Fos and FCA have shared in recent months in various webinars aimed at financial service firms and advisers.
Prior to the pandemic, the Fos had been facing scrutiny from parliament, the media and the general public in terms of reducing its waiting times to investigate and resolve cases and has stated that it does aim to achieve this.
However, it is difficult to see how, under the current situation, this is going to be possible particularly given the necessary Covid-19 alterations the Fos has put in place around the way it works, reducing its phone line access hours and declining to accept posted mail.
It is also important to view these immediate issues in terms of the Fos's wider budgetary position, in which it has had to absorb significant costs of just over £25m through the reduction of its reserves.
This is likely to make the deployment of resource and personnel more challenging than before, potentially resulting in slower decision-making.
These delays may also be compounded by potential legal challenges to Fos's final decisions by losing parties – particularly in cases where a Fos decision may potentially pose an existential threat to a business or have wide-ranging adverse impacts across its business lines.
