The support services provider said the decision could impact professional indemnity insurance premiums and excesses because of the cost of the redress being paid, although the Financial Services Authority (FSA) has already denied this.
It also pointed out the FOS is the only body in the UK where a final decision cannot be challenged or have an appeal process and cited inconsistencies in previous rulings.
Furthermore, it questioned whether adjudicators are qualified to make decisions, saying the current Chief Ombudsman, Natalie Ceeney, was previously a “head librarian“.
Keith Richards, distribution and development director at Tenet, said: “Whilst it is important that consumers have an appropriate mechanism to pursue complaints and are responded to fairly and within a reasonable timeframe, advisers also need to be treated fairly.
“Whilst there are some changes to the complaint handling rules that we consider sensible and indeed already incorporate into our processes, there are other elements that will add further challenge to an already impacted financial services sector.
“The current £100,000 limit is much higher than the limit for the new Legal Services Ombudsman, set by Parliament at £30,000, plus of course, they have a long stop which we are still being denied. Again, the playing field seems to be less than level for the IFA community.”
Tenet also warned it might become difficult for advisers to challenge the thinking of adjudicators as detailed reports into their findings are to be replaced by a “couple of paragraphs, simply summarising the outcome and devoid of any background”.
