The UK government has announced what it describes as the most significant overhaul of the UK’s Financial Ombudsman Service (FOS) since its creation.

The reforms go well beyond process. They raise broader questions about the role of an ombudsman service and its impact on market competitiveness.

The UK experience offers important lessons for Canadian policymakers, particularly the Canadian Securities Administrators, as it considers whether the Ombudsman for Banking Services and Investments should be granted binding authority.

This discussion examines the drivers behind the UK government’s reforms to the FOS framework, and the implications for regulation, investor protection, and the market.