Walter Merricks, the former chief financial ombudsman, stated that it was an unusual creature which the establishment would not have dared bring into existence had a series of voluntary initiatives not already been in place.
We have unqualified and sometimes stupid adjudicators sitting in judgement, using their hindsight 20/20 vision and the ‘balance of probabilities’ and able to award up to £150,000.
Firms are denied oral hearings, denied an independent appeal, denied the protection of the longstop and, as proved by the abortive judicial review attempt in 2012, denied judicial review recourse to the courts.
Like the regulator, the Fos is able to do pretty much what it wants and its patina of competence will remain unchallenged until a brave government (clearly not this one) trims its claws.
Alan Lakey
Partner
Highclere Financial Services
Hemel Hempstead
Hertfordshire