header-logo header-logo

03 October 2019 / Richard Samuel
Issue: 7858 / Categories: Opinion , Banking , Regulatory , Commercial
printer mail-detail

The Financial Ombudsman Service: over expansion?

8701
UK financial markets need the common law back, says Richard Samuel

The Financial Ombudsman Service (FOS) decides disputes on the basis of an individual ombudsman’s opinion of what is ‘fair and reasonable’. They need not decide in accordance with the law or indeed with regulation. Their decision is not subject to appeal. It can only be challenged by judicial review on the basis that no reasonable ombudsman could have thought such an outcome is fair or reasonable. Most decisions are confidential. It is not open justice as we know it.

As a matter of policy, then, politicians decided to disapply what we know as the rule of law to financial firms when they created FOS. As we all know, the rule of law involves the creation of clear and certain legal obligations, so that legal outcomes are predictable. That way, that firms know precisely the rules they need to comply with and what will happen if they don’t.

Where there is doubt about what amounts to compliance with

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Switalskis—five appointments

Switalskis—five appointments

Firm expands national abuse compensation team

Mathys & Squire—nine promotions

Mathys & Squire—nine promotions

IP firm announces new partners and senior promotions across UK offices

Carey Olsen—five promotions

Carey Olsen—five promotions

Carey Olsen promotes five lawyers to the partnership

NEWS
A High Court ruling has sent a jolt through the legal profession after a newly qualified solicitor used an internal AI tool to produce court correspondence containing a fabricated legal citation
A significant data privacy ruling has clarified what counts as valid consent under UK data protection law
Executors may be overlooking billions of pounds in estate assets hidden in forgotten investments and misplaced share certificates
Britain’s booming non-surgical cosmetics market is operating in what some critics describe as a regulatory ‘Wild West’
Family contact disputes are becoming an increasingly prominent feature of Court of Protection litigation
back-to-top-scroll