§ Mr. EffordTo ask the Chancellor of the Exchequer what steps he has taken to ensure that the Financial Services Authority's single ombudsman service is sufficiently funded to protect the interests of consumers; and if he will make a statement. [106514]
§ Miss Melanie JohnsonThe Financial Services and Markets Bill, in paragraph 2 of Schedule 14, requires the Financial Services Authority to take such steps as are116W necessary to ensure that the operator of the Ombudsman scheme is capable of exercising the functions conferred by the Bill. The Bill also provides that funding should be provided by the industry. The FSA are in the process of consulting on the detailed arrangements of the Ombudsman Scheme.
§ Mr. EffordTo ask the Chancellor of the Exchequer what representations he has received regarding the eligibility of companies to complain to the Financial Services Authority's single ombudsman service; and if he will make a statement. [106513]
§ Miss Melanie JohnsonWhile the Financial Services and Markets Bill sets the general framework for the ombudsman scheme, the detailed operation of the scheme will be determined in rules made by the Financial Services Authority. It will be open, as specified in Clause 201(7) of the Bill, to the Authority to define certain categories of firms as eligible complainants. The FSA is currently consulting on this matter and has proposed that firms should be eligible to use the scheme if they have a turnover of up to £1 million and no more than four staff.