Mortgage News
AIFA calls for review of FOS
The Association of Independent Financial Advisers (AIFA) has called on all political parties to review the Financial Ombudsman Service (FOS).
The trade body is concerned that FOS is creating a second tier to the regulatory structure.
AIFA wants a review to look at giving independent financial advisers (IFAs) the same legal protection as other UK professions. The trade body also wants to introduce a ‘no loss, no fee’ system so IFAs are not charged if they are cleared of any wrongdoing by FOS.
Chris Cummings, director general of AIFA, said it was concerned that the Ombudsman has become a second tier regulator to FSA.
He explained: “The FOS should be a mediator between disputing parties rather than the ‘judge and jury’ of firms’ activity. This was not intended when it was introduced. FOS needs to be a smaller, cheaper operation, sharing resources with other parts of the regulatory structure.”
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