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The Financial Ombudsman Service: over expansion?

03 October 2019 / Richard Samuel
Issue: 7858 / Categories: Opinion , Banking , Regulatory , Commercial
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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

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MOVERS & SHAKERS

CBI South-East Council—Mike Wilson

CBI South-East Council—Mike Wilson

Blake Morgan managing partner appointed chair of CBI South-East Council

Birketts—Phillippa O’Neill

Birketts—Phillippa O’Neill

Commercial dispute resolution team welcomes partner in Cambridge

Charles Russell Speechlys—Matthew Griffin

Charles Russell Speechlys—Matthew Griffin

Firm strengthens international funds capability with senior hire

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