The Monetary Conduct Authority has dominated out permitting larger SMEs to make complaints to the Monetary Ombudsman Service.
Following an in depth overview printed as we speak (FS23/5), the FCA says there are inadequate causes for extending protection as 99% of SMEs can already make complaints.
The thresholds for making complaints to the FOS will subsequently stay the identical as now.
Since April 2019 FCA guidelines have meant that extra small and medium-sized companies have been capable of refer complaints to the Ombudsman service.
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A small enterprise or medium-sized enterprise (SME) is outlined by the FCA as one which has an annual turnover of lower than £6.5m and employs fewer than 50 folks or has a stability sheet whole of lower than £5m.
Earlier than 2019, the Ombudsman service was solely capable of take into account complaints from micro-enterprises (ones using fewer than 10 folks or with a turnover or annual stability sheet that doesn’t exceed €2m / £1.74m).
When entry was widened in 2019, which additionally allowed extra charities and trusts to complain, the FCA stated it might perform a overview inside two years. Nonetheless, this was postponed till this 12 months as a result of pandemic.
The delayed overview was launched in March with a suggestions assertion and response printed as we speak.
The FCA stated that the foundations which got here into pressure in 2019 have given 99% of personal companies within the UK entry to the Ombudsman service with no confirmed want to increase this additional to bigger companies which have different strategies of dispute decision. Responses to the proposal to widen entry have been “blended”, the FCA stated.
In its suggestions the FCA stated: “We take into account the present thresholds strike the suitable stability between offering entry to the ombudsman service to SMEs that should not have the assets to resolve monetary companies disputes by way of the authorized system and broadening this entry too far.”
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