The Financial Ombudsman Service (FOS) will drift closer to becoming a regulator under a proposed memorandum of understanding (MoU) with the Financial Conduct Authority (FCA), according to a legal expert.
The draft MoU was issued last month, building on the existing MoU between the FOS and the financial services industry. Although the new agreement is largely similar to the previous MoU, Robbie Constance, a partner at Reynolds Porter Chamberlain, said there were subtle differences which could change the relationship between the organisations. One new clause he pointed to appears to put more onus on the Ombudsman to share information with the FCA, saying it "must disclose information" if it thinks this "might be of assistance to the FCA in advancing one or more of the FCA's operational ...
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