Unlock the Editor’s Digest totally free
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.
The pinnacle of the UK’s Monetary Ombudsman Service stop unexpectedly on Thursday in the midst of a serious evaluation of the patron redress system within the monetary companies sector.
The departure of Abby Thomas, who has run the ombudsman since October 2022, comes as the federal government is stepping up stress on all of Britain’s predominant regulators to ease the burden of guidelines on companies in an effort to spice up the nation’s flagging financial system.
The ombudsman has attracted criticism from the Metropolis of London for awarding compensation to clients who say they’ve been mistreated by monetary companies teams, which trade executives says deters overseas buyers from the sector.
Chancellor Rachel Reeves final 12 months referred to as on the FOS and the Monetary Conduct Authority to enhance how they deal with “historic market apply and mass redress occasions” amid fears that banks might must pay billions of kilos in redress over motor finance mis-selling allegations.
The FOS and FCA outlined potential modifications to the monetary redress system in November, together with giving firms longer to reply to buyer complaints and lowering the scope to enchantment towards ombudsman choices. A session closed final Friday, with proposals anticipated within the first half of this 12 months.
Thomas has been changed on an interim foundation by her deputy James Dipple-Johnstone taking on the chief ombudsman function, with chief finance and danger officer Jenny Simmonds changing into chief government.
