Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to bring currency services into the scope of the Financial Ombudsman Service.

The Financial Ombudsman Service (FOS) can only consider cases which fall within its compulsory or voluntary jurisdiction. The FOS compulsory jurisdiction covers regulated activities being undertaken by firms authorised by the Financial Conduct Authority (FCA). The voluntary jurisdiction includes firms which have voluntarily agreed to be subject to FOS processes and decisions where they do not already fall within the compulsory jurisdiction.

Providing currency exchange services is not an FCA regulated activity, and so is not automatically within scope of the compulsory jurisdiction of the FOS. However, some payment services can involve some element of currency exchange services (for example, when making an online purchase in a foreign currency, using a payment card, or withdrawing foreign cash from an ATM). As payment services are regulated activities, and payment service providers are FCA authorised, these services will fall within scope of the FOS.

The jurisdiction of the FOS and what complaints it can deal with are determined by the FCA and set out in the FCA Handbook. The FCA is operationally independent from Government.