Daily FSR Update - 11 August 2026

UK

FOS: Policy statement on modernising redress system

The Financial Ombudsman Service (FOS) has published a policy statement outlining the operational reforms it will take forward following a joint consultation with the FCA. Key measures include:

• an amendment to its rules confirming that decisions will be based on standards applicable at the time of the act or omission and will not be applied retrospectively, providing a foundation for proposed legislative changes to FOS's ‘fair and reasonable’ remit that are currently progressing through Parliament;
• new powers, effective 1 October 2026, allowing FOS to dismiss complaints that are not appropriate for the service and may be better suited to court, law enforcement or another dispute resolution process, or where there has been no financial loss or material distress or inconvenience; and
• a new registration stage (following consultation on differential case fees later in 2026) to be rolled out in 2027, aimed at ensuring complaints are within scope and ready to be investigated before being allocated to a caseworker.

FOS also confirmed that it will publish the first of its joint thematic reviews with the FCA later in 2026, to provide more insight on the types of complaints it receives and its approach to resolving them.

Crypto and Digital Assets APPG writes to banks

The Crypto and Digital Assets All-Party Parliamentary Group (APPG) has published a template version of its ‘Dear CEO’ letter to UK banks, asking them to explain their approach to providing banking services to regulated UK crypto and digital asset businesses. The APPG launched its inquiry into Access to Banking Services in July 2026 and is seeking written evidence from banks, crypto and digital asset businesses, regulators and other interested stakeholders until 31 August 2026. It will then publish a report setting out its findings and recommendations to HM Government.