Several financial regulatory bodies have united to set up the Wider Implication Framework to collaborate on matters of common interests.
The framework has been produced and agreed by the Financial Ombudsman Service (Fos), the Financial Conduct Authority (FCA), the Financial Services Compensation Scheme (FSCS), The Pensions Regulator (TPR) and the Money and Pensions Service (MaPS).
It sets out a structure for its members to collaborate on matters of common interest to achieve a better outcome for consumers, small businesses and the financial services industry, where compatible with members’ independent statutory roles and functions.
It builds on existing collaboration already in place and will give greater transparency for wider stakeholders.
Nausicaa Delfas, interim chief executive and chief ombudsman at the Fos, said: “The Wider Implications Framework is a significant step forward. The framework formalises existing collaboration among members on matters of common interest and will give greater transparency to wider stakeholders.
The framework will be overseen by a group currently chaired by the Fos and will rotate on a 12-month basis between its members.
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The Fos said that an issue with potential wider implications is one that could have a wider impact across the financial services industry, and there is a need to work together to determine the optimal way to deal with the issue.
The ombudsman added: “It could be because a large number of consumers are potentially affected, or because of the amount of redress at stake, or because there is a risk of business failure.
“The issue might be identified, for example, through the Fos’ casework, or through FCA supervision.
“Issues with potential wider implications that are identified by the members can be easily escalated through working-level, Executive or Chairs’ meetings, depending on their likely impact.
“The framework ultimately aims to achieve better outcomes for consumers, small businesses and the financial services industry, by building on the existing successful engagement that already takes place.
“Though not all issues which have potential wider implications will be relevant to all the members of the regulatory family involved in the process, the framework ensures that all members can be involved where relevant, to maximise collaboration without compromising the ability to act quickly and robustly.”
