Aviva court judgment highlights flaws in FOS decision-making

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Melissa Collett discusses why there is legal uncertainty in a recent Financial Ombudsman decision on an Aviva life policy complaint.

Does FOS's fair and reasonable jurisdiction occupy an ‘uncertain space' outside common law and statute?  Mr Justice Jay in Aviva Life & Pensions (UK) Ltd, R v  McCulloch & Anor [2017] EWHC 352 said as much in a judgment handed down this week in the High Court. Aviva brought judicial review proceedings against a decision by a FOS ombudsman that it should reinstate a single life policy after it had voided it on the grounds of non-disclosure of mental health concerns and a referral for a CT scan.  Shortly after taking out the policy, the policyholder was diagnosed with a rare form of ...

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