FSA
The Financial Ombudsman Service (FOS) may soon be given more freedom when it comes to dismissing complaints, it has been revealed. A consultation paper published by the Financial Services Authority (FSA) has proposed that the grounds on which the FOS may dismiss a complaint, without first considering its merits, should be extended.
The paper suggested that the FOS should, in the future, stop considering a case in the following two circumstances. The first is when a firm has reviewed the matter, in line with a formal regulatory requirement from the FSA, and offered to pay any required redress, or secondly, where the matter is to be subject to a test case.
Apart from proposing changes to the claims handling process, the paper also outlined the updated adjustments to the procedures for handling complaints to the FOS. These have been amended in the hope that they would clarify the different roles and responsibilities of the regulator and the Ombudsman.
Under the new procedures, the FSA and the FOS will have nominated individuals within both organisations who will act as contacts for cases where there is widespread concern or issues that could cause significant consumer detriment. These individuals will be responsible for communication, liaison and co-ordination between the two bodies in order to ensure the processes run smoothly.
Case studies have also been provided to illustrate how the new processes may work in the future. The updated procedures come as a response to wider industry calls for greater transparency.
"Feedback has shown that both industry and consumer bodies want as much transparency as possible about the wider implications process. The new proposed rules will clarify and formalise the procedure, and provide input from relevant stakeholders," said Walter Merricks, FOS chief ombudsman.
Responses to the consultation on the proposed changes to the FOS procedural rules should be sent to the FOS before the 30 June 2005.
