HC Deb 12 May 2004 vol 421 cc355-6W
Ian Lucas

To ask the Chancellor of the Exchequer (1) what plans he has to review the conduct of the scheme operated under section 225 of the Financial Services and Markets Act 2000; [172195]

  1. (2) if he will order the amendment of the Dispute Resolution section of the Financial Services Authority's Handbook of Rules and Guidance to improve the speed of consideration of determinations; [172196]
  2. (3) when he expects the review of the Financial Ombudsman Service to report; [172197]
  3. (4) if he will make a statement on the operation of the Independent Assessor of the Financial Ombudsman Service. [172198]

Ruth Kelly

The Financial Ombudsman Service is an independent organisation. In November last year, I announced the two-year review of the operation of the Financial Services and Market Act 2000. As part of that review, I asked the Financial Services Authority and the Financial Ombudsman Service to review the circumstances in which the Financial Services Authority takes regulatory action instead of individual cases being determined by the Ombudsman and to consider introducing a process by which firms may appeal against Ombudsman decisions. The Financial Services Authority and the Financial Ombudsman Service plan to publish a joint consultation paper by early June.

Responsibility for setting timescale targets for the resolution of complaints is a matter for the Financial Ombudsman Service. The Financial Ombudsman Service sets out for consultation annually a draft Plan and Budget of its overall financial and workload targets, including the number of cases it expects to receive and the number it intends to resolve, overall costs, productivity rates, and average timescales within which it aims to resolve cases. Cases that are not resolved within 12 months are monitored by the Board of the Financial Ombudsman Service.

The role of the Independent Assessor is to carry out a final review of the service provided by the Financial Ombudsman Service, in cases where the consumer remains dissatisfied with the Financial Ombudsman Service, the Independent Assessor can investigative the Ombudsman's process and the behaviour of its staff. Disagreements about the merits of decisions are expressly excluded from his jurisdiction but is authorised to make findings and recommendations for redress in cases where he believes it is justified.

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