The Monetary Conduct Authority has dominated out permitting larger SMEs to make complaints to the Monetary Ombudsman Service.
Following an in depth assessment printed right now (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 in a position to refer complaints to the Ombudsman service.
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 individuals or has a stability sheet whole of lower than £5m.
Earlier than 2019, the Ombudsman service was solely in a position to take into account complaints from micro-enterprises (ones using fewer than 10 individuals 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 mentioned it could perform a assessment inside two years. Nonetheless, this was postponed till this 12 months as a result of pandemic.
The delayed assessment was launched in March with a suggestions assertion and response printed right now.
The FCA mentioned that the foundations which got here into drive 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 various strategies of dispute decision. Responses to the proposal to widen entry have been “combined”, the FCA mentioned.
In its suggestions the FCA mentioned: “We take into account the present thresholds strike the suitable stability between offering entry to the ombudsman service to SMEs that don’t have the assets to resolve monetary providers disputes by means of the authorized system and broadening this entry too far.”
