AIFA calls for review of Ombudsman

A no-loss, no-fee system should also be introduced, to protect advisers who are cleared of wrongdoing. AIFA says the ombudsman needs to be a ‘small, cheaper operation' and should scale back its operations and role. Chris Cummings, director general of AIFA, says: "Now is the time to review the work of the Ombudsman. It should be a mediator between disputing parties rather than the ‘judge and jury' of firms' activity. "We are concerned that the Ombudsman has become a second tier regulator to FSA. This was not intended when it was introduced. FOS needs to be a smaller, cheaper operati...