Lock the editor’s digest lock for free
Roula Khalaf, the editor of FT, selects his favorite story in this week’s newsletter.
The head of the UK Financial Ombudsman Services unexpectedly resigned on Thursday, midway through a major review of the consumer relief system in the financial services sector.
Abby Thomas, who has been running the Ombudsman since October 2022, puts pressure on all of the UK’s major regulators to ease the burden of corporate rules to boost the government’s flag-setting economy. It happens to strengthen.
Thomas said he was unhappy with the Ombudsman board beginning a claim with the claims management company to file a lawsuit.
The person also noted that the board “has not come to praise” Thomas. Chairman Barones Zahida Manzoll said in a statement: All successes in her future career. ”
The Ombudsman has been attracting criticism from the city of London for awarding compensation to customers who say they were abused by the Financial Services Group.
Bank executives argue that the UK’s “compensation culture” is one of the main factors that are blocking investors and considering financial services companies.
“Abby and the Ombudsman have been on fire for the last few months,” said James Daly, head of consumer group Fairer Finance.
“She may be stopping in protest in the direction of travel. If so, it’s incredibly worrying, perhaps the strongest signal, and the Treasury is serious about enduring consumer protection. That means there is.”
Thomas and FOS were asked to comment.
Thomas was interim replaced by Deputy James Dipple Johnstone taking over the role of the Ombudsman, with Chief Finance and Risk Officer Jenny Simmons becoming chief executive officers.
Last year, Prime Minister Rachel Reeves called on FOS and financial action agencies to improve how they handle “historic market practices and large-scale relief events.”
The resigning chief executive was scheduled to appear before the Congressional Treasury Select Committee next Tuesday. However, MPS said Thursday that it would question Dipple-Johnstone and Baroness Manzoor instead.
The committee not only investigates “to what extent the ongoing legal procedures related to the Automotive Finance sector and the Committee have affected FOS,” but also includes the “exploration of the situation” of her exit. He said he might choose.
FOS and the FCA outlined potential changes to the financial relief system in November. This has led to businesses responding to customer complaints and reducing the scope of appeals to the Ombudsman decision. Consultations ended last Friday, with proposals expected in the first half of this year.
The UK’s finances, the bank’s leading trade institution, in its response, stated, “It is clear that this part of the regulatory system is not functioning as efficiently as possible, and it has caused serious uncertainty in the framework. It said it would generate and therefore serve as a resistance to investors’ appeals. For UK financial services.”
The Financing and Leasing Association states that “companies FCA rules can find themselves caught up in mass relief events,” adding this to the “regulatory uncertainty.” It poses additional risks to market operators and harms economic growth.
