The FOS

Financial Ombudsman Service

The Financial Ombudsman Service
Powers and Duties
•    The FOS’ main duty is to deal with complaints from consumers about a wide range of financial services institutions.
•    These include insurance companies, banks, building societies, investment firms and financial advisers.
•    The FOS initially acts as mediator and conciliator, allowing firms to look into complaints themselves.
•    Actual FOS decisions are only required for about 10% of complaints.
•    Complaints can be rejected , partially upheld or upheld.
•    If upheld, the firm in question can be fined a maximum of £100,000
•    However, decisions are only enforceable in the courts if the complainant accepts them.
•    If the complainant does not accept the decision – usually a rejection - then regular legal proceedings ensue.
Accountability
•    The Ombudsman is accountable to the public through the Treasury, and in turn the Treasury Select Committee in Parliament.
•    It is not, however, covered by the Freedom of Information Act and subject to FoI Requests.
•    Service complaints from consumers and businesses are dealt with by the ‘Independent Assessor’.
•    However, he or she is appointed by the FOS board.
•    Furthermore, they do not consider complaints about actual FOS decisions.
•    The Ombudsman also carries out and publishes annual customer satisfaction surveys.
Financial Services Compensation Scheme
•    Established by the FSMA 2000.
•    The FSCS is an independent body, although it is closely linked with the FSA and FOS.
•    It exists to provide redress to individuals and small companies suffering financial loss through FSA-authorised firms which have gone into default.
•    There are specific limits on which kind of claims can be compensated.
•    There are also limits on how much compensation can be offered in each case.
•    For deposits, investments and home finance, £50,000 is the maximum compensation.
•    For insurance, insurance advice and arranging: 90% of the claim with no upper limit.
•    Compulsory insurance is covered in full.
•    Compensation is not paid where firms are in default but still able to meet claims.
LTC Insurance
•    Covers costs of care required by chronic conditions and diseases.
•    Differs from PHI which covers acute conditions from which recovery is expected.
 

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