The FCA has published an exchange of correspondence between itself and the Financial Ombudsman Service (FOS) which sheds some light on the question of what allowances each intends making for the exceptional circumstances faced by many regulated firms in recent times.
The FCA’s letter sought to confirm whether the FOS would be taking account of guidance issued by the regulator ‘that gives firms additional flexibility to help them deal with difficult conditions.’
In reply, the ombudsman confirmed that it will ‘continue to take account of the FCA’s revised expectations of what constitutes compliance with FCA rules, guidance and standards, as well as good industry practice at this time.’
The FOS specifically noted that this includes guidance and statements of regulatory forbearance giving firms additional flexibility in the face of challenging circumstances.
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