The MoU provides a framework for and describes how the FCA and FOS will cooperate and consult with each other in the exercise of their roles and respective functions as required by Schedule 17 paragraph 3A(2) of the Financial Services and Markets Act 2000 (FSMA 2000).
In short, the MoU aims to establish a consistent approach between the FCA and FOS, to dispel confusions and misunderstandings about their respective roles and duties set out in the “Terms of Reference for the Wider Implications Framework”. This includes the duty to cooperate per section 415C FSMA 2000, sets out obligations for cooperation at early stages before publications on, for example, proposals, consultations or guidelines and how both entities will disclose and share information between themselves.
The MoU further highlights a number of scenarios that the FCA and FOS must cooperate on at a sectoral, directoral and working level including issues that have wider implications for a large number of consumers where there is a significant amount of redress at stake or impacts the Wider Implications Framework.
The FCA and FOS will monitor the operation of this MoU and its effectiveness and efficiency on an annual basis and amend this MoU from time to time as necessary.