The Financial Ombudsman Service (FOS) has published a Consultation amendment to rules – Benchmarks Regulation, MiFID II and advising on investments. The consultation proposes to amend the FCA’s Dispute Resolution: Complaints Sourcebook (DISP) and relate to the following:
- Benchmarks Regulation. The FCA has consulted on removing complaints about “administering a regulated benchmark” from the compulsory jurisdiction, so that complaints about this will not be within the FOS’ compulsory jurisdiction from 1 January 2018. The FOS proposes to also exclude the activity from its voluntary jurisdiction. Annex A contains the Benchmarks Regulation Amendment (Financial Ombudsman Service) Instrument 2017, which is the draft instrument implementing the FOS’ proposal. It will come into force on 1 January 2018, which is when most of the provisions of the Benchmarks Regulation will apply;
- MiFID II. The FOS proposes to insert a new section after DISP 1.1 following the implementation of MiFID II. The FCA is also amending DISP 2 to add activities in a new DISP 2.3.1A and 2.3.1B in the compulsory jurisdiction, which reflect the requirements of MiFID II. These changes come into force on 3 January 2018, which is the date from which MiFID II applies. Annex B contains the Dispute Resolution: MiFID 2 Complaints (Voluntary Jurisdiction) (Financial Ombudsman Service) Instrument, which is the draft instrument implementing the FOS’ proposals; and
- definition of advising on investments. As a result of changes to the definition of the regulated activity of “advising on investments” in Article 53 of the Financial Services and Markets Act (Regulated Activities) Order 2001, the FCA consulted on amendments to DISP 2.3.1R to add a new activity of giving “non-personal recommendation advice” to the compulsory jurisdiction. The new activity will take effect from 3 January 2018. The FOS proposes to amend DISP 2.5.1R and Annex 1 to DISP 2 to include this activity in the voluntary jurisdiction to provide clarity for consumers and firms. Annex C contains the Advising on Investments (Article 53(1) of the Regulated Activities Order) (Consequential Amendments) (Financial Ombudsman Service) Instrument 2017, which is the draft instrument implementing the FOS’ proposals.
The deadline for comments on the consultation paper is 6 November 2017.
View FOS consults on amendments to voluntary jurisdiction, 10 October 2017