Speaking to the British & Irish Ombudsman Association Conference, Vernon Everitt, director of retail themes at the FSA, admitted a close relationship between the two bodies was important for the industry, especially if it was to tackle issues with wider implications, such as mortgage exit fees.
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However, Everitt believed this was particularly the case as the regulator moved from rules towards principles.
He said: “The role of FOS is an essential enabler of our move towards more principles-based regulation. We are firmly of the view that the FOS is key to allowing us to concentrate on the wider issues that are likely to cause consumer detriment. Without an Ombudsman service, the FSA would not be able to pursue the risk-based strategy that it does and consumers would need to resort to an over-worked court system to resolve individual disputes.”
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Everitt also emphasised that while both institutions were independent, both were looking to ensure the best deal for the customer.
However, Mark Sismey-Durrant, chief executive of Heritable Bank, warned: “The Ombudsman must remain objective as if it is seen as an instrument of the FSA, then opinions will change rapidly. There needs to be clarity of the two roles as while working in conjunction is important, FOS must be seen as independent in its interpretation of the law.”
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