What financial criterion must micro enterprises meet to pursue dispute resolution through the FOS?

The requirement that micro enterprises must have an annual turnover of less than EUR2 million to pursue dispute resolution through the Financial Ombudsman Service (FOS) is grounded in the specific definition of a micro enterprise as established by regulatory guidelines. This criterion is important because it helps to categorize and delimit the types of businesses that can access certain services meant for smaller entities.

The annual turnover limit of less than EUR2 million ensures that the focus remains on genuinely small businesses that might lack the resources or bargaining power to effectively resolve disputes with larger financial service providers. This threshold promotes fairness in the resolution process, allowing those who operate at a micro scale to have equal access to dispute resolution mechanisms that may otherwise be dominated by larger enterprises.

In contrast, the criteria that refer to employee count, geographical operation, or the duration of business operation do not specifically align with the financial dimensions that are being used to establish eligibility for dispute resolution services. Each of these factors may contribute to a business's profile, but they do not hold the same significance in the context of accessing the FOS as the financial turnover threshold does.