FOS regulation could catch small brokers unawares

Small brokers will take the impact of another wave of regulation from the Financial Ombudsman Service (FOS), as a result of new legislation in the Consumer Credit Act 2006.

Last month, the FOS was given jurisdiction to investigate complaints against companies with a Consumer Credit Act license - a move that will affect up to 100,000 firms, including brokers.

Andrew Welch, head of litigation and insurance at Stephensons Solicitors, said licensees would have to comply with the strict complaints