Rise of claims managers is firms' fault, says FOS

clock

Firms' failures to rectify mistakes has been a key factor in the rise of claims management companies (CMCs), Financial Ombudsman Service (FOS) chief executive Natalie Ceeney said.

Ceeney said the CMC sector had managed to gain a foothold "largely because of the mistakes made by financial businesses, and the fact that nobody moved quickly enough to put things right". Writing in the FOS's quarterly report - covering July to September this year - the chief ombudsman said the FOS had not found any evidence of a "compensation culture" in financial services. She said, if it had found evidence, the Ombudsman would expect to see a change in its 'uphold' rates, which refer to the proportion of decisions found in favour of the complainant. But Ceeney said those rates had...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

PA360: FCA's Hulme - Targeted support will 'never' replace holistic financial planning

PA360: FCA's Hulme - Targeted support will 'never' replace holistic financial planning

A ‘broader stepping stone’ to fully fledged advice

Isabel Baxter
clock 01 May 2025 • 2 min read
FCA on finfluencer financial harm: 'We need people to sit up and take action'

FCA on finfluencer financial harm: 'We need people to sit up and take action'

Treasury Committee questions regulator on the impact of finfluencers

Isabel Baxter
clock 01 May 2025 • 4 min read
FCA's data reporting cuts: 'A start but fairly low hanging fruit'

FCA's data reporting cuts: 'A start but fairly low hanging fruit'

Impact is yet to be determined but a positive step, commentators say

Isabel Baxter
clock 29 April 2025 • 4 min read