A judge recently ruled in the favour of a policyholder who had her claim rejected by Friends Provident, even though the Ombudsman had supported the provider's decision. Could this mark a shift in the way claims are dealt with in the future? While this case was decided under Scottish law, could this affect the industry as a whole?
Market views Alan Lakey, Highclere Financial Services There is great disquiet within the financial services community regarding the Financial Ombudsman Service (FOS). The main issues relate to the FOS working within its own rules of suitability and outside of those protections afforded by British Law. One overwhelming concern is that, while firms are bound by an Ombudsman's decision, the complainant has the right to pursue the case through the court system. The FOS has often argued that the distinction is nebulous because consumers rarely instigate court actions. While this was once...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
