MP and MEP criticise FOS

[AuntieP]

Most readers of these discussions will probably be consumers (like me) but the FOS can be hard on IFA's too. It cuts both ways. For instance if an unqualified ombudsman makes a mistake and issues a bizarre decision, and the consumer accepts it, then the IFA has a binding decision imposed on him without argument or appeal. It's a disgrace really especially as from next year decisons of up to £150,000 will be involved.

 

Anyway an MP and MEP have got involved and criticised FOS. Its all in these three links which are well worth a read regarding how an unqualified staff can pass binding and non-appealable judgement on a qualified financial practitioner.

 

Mark Burstow MP (and Minister) contacts FOS

http://www.ftadviser.com/FTAdviser/Regulation/News/article/20110602/80a3ab78-8d07-11e0-8595-00144f2af8e8/Minister-tells-Fos-that-staff-need-to-be-IFA-qualified.jsp

 

Geoffery Bloom MEP writes as well

http://www.ftadviser.com/FTAdviser/Regulation/Regulators/News/article/20110516/9abac380-7fbe-11e0-8dba-00144f2af8e8/Fos-staff-not-qualified-to-adjudicate-says-MEP.jsp

 

Mr Bloom's letter in full...he does not mince words, especially about Judicial Reviews

http://v2.panaceaifa.com/img/20/documents/Bloom%20to%20Ceeney%20130511.pdf

 

I also liked a comment from an FOS spokeperson in one of the above links that

"Like a court, we do not require our staff to list out their qualifications after their name, we prefer the quality of their work to speak for itself"

He should take a look at this for an example of FOS quality

http://www.financial-ombudsman-problems.co.uk/full.htm

 

Perhaps writing to your MP about FOS problems is a good way forward after all. My experience of asking MPs to take up things is that they just pass letters back and forth, but these two have actually intervened and made points to Natalie Ceeney, FOS Chief Adjudicator.

 

Auntie

Edited June 16, 2011 by AuntieP
fix error in url + some editing

[theghost]

Whats the alternative to the FOS?

 

IIRC it is paid for by the financial institutions. If they removed their funding what would be left?

[rebel11]

I found the FOS eager in wanting you complaints to be lodged, not surprising at £450 a throw. Their staff compete for complaints, probably get some sort of bonus. Theres quite a bit more.

[theghost]

I think I read a link elsewhere on the forum of someone being paid a large daily rate while they contracted for the FOS - so they obviously want the compalints dealt with as quick as possible.

 

The simple fact is to have staff of the calibre to deal with the massivley complex range of issues that the FOS no doubt deal with would take a significant amount of investment, and I am guessing no one wants to pay for it.

 

Things would probably be a lot worse without the FOS.

[rebel11]

You have to read some of the rubbish they come out with, plenty of threads out there.