§ Mr. WyattTo ask the Chancellor of the Exchequer what power the financial ombudsman has to(a) impose and (b) collect fines from recalcitrant companies and individuals found guilty of selling incorrect policies. [65592]
§ Ruth KellyThe Financial Ombudsman Service deals with complaints against financial services firms. It does not impose fines but where it decides a complaint against a firm, it can require the firm to make good the complainant's losses. The Financial Services Authority, as regulator, makes rules for regulated firms, including rules that they comply promptly with an ombudsman's decision. The FSA has a full range of disciplinary and enforcement powers over regulated firms, including the power to impose and collect fines.