The Parliamentary Ombudsman's decision yesterday to clear the FSA from accusations - that it failed ...
The Parliamentary Ombudsman's decision yesterday to clear the FSA from accusations - that it failed to carry out its role during the Equitable Life fiasco - will fundamentally damage both consumer confidence and trust in the financial service system, says the Consumers' Association.
In a response to the Ombudsman's verdict on Equitable Life, CA's senior public affairs officer Delroy Corinaldi attacks the decision saying that:
"By ruling out the Parliamentary Ombudsman as a route for receiving compensation all Equitable Life policyholders will be forced to foot the bill despite the Financial Services Authority's failings as identified in its own internal Baird report.
He adds that this ruling shows that the government's financial services legislation suffers a "flaw" as it leaves consumers 'paying for the bill'.
"The Government cannot allow consumers to bear the brunt of this scandal by hiding behind the Ombudsman's ruling. Instead it must act responsibly by opening the Financial Services Markets Act to a fundamental review."
"Consumers are now being forced to shoulder the blow for regulatory and corporate mistakes. It is ludicrous for the government to transfer financial responsibility for the future onto the shoulders of consumers with one hand and remove their right to protection when something goes wrong with the other."
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