Lloyd's Maritime and Commercial Law Quarterly

Professor Francis D Rose

Document

THE FINANCIAL OMBUDSMAN SERVICE AND DISPUTES INVOLVING “WIDER IMPLICATIONS” ISSUES

Harry McVea * and Peter Cumper †

The aim of this article is to assess the way in which the Financial Ombudsman Service (FOS) and the Financial Services Authority (FSA) have responded to concerns about the means by which disputes which raise “wider implications” issues are identified and subsequently processed within the regulatory framework established by the Financial Services and Markets Act 2000. Given the importance of the financial services sector to the UK economy, these are matters that are of some significance to firms (whose business operations may be adversely affected by the way in which cases which raise wider implication are handled) and to consumers (who may be unaware that such disputes have arisen and of their need to seek redress). In view of the degree of regulatory convergence in financial centres across the globe, these issues are also likely to be of interest to those responsible for the operation of similar schemes elsewhere.

* University of Bristol.

† University of Leicester.

The following abbreviations are used in the text and/or footnotes:

BBA: British Bankers Association;

BBA, Response: “Response to the FSA Consultation Paper 04/12—FSMA 2 Year Review: Financial Ombudsman Service” (September, 2004) (<http://www.bba.org.uk/bba/jsp/polopoly.isp?d=155&a=4536 >);

Blair et al : M Blair, L Mingella, M Taylor, M Treipland and G Walker, Blackstone’s Guide to the Financial Services and Markets Act 2000 (Blackstone Press, 2000);

BSA: Building Societies Association;

BSA, Review: “FSA and FOS CP04/12: FSMA 2 Year Review: Financial Ombudsman Service—Response by the Building Society Association ” (September 2004) (<http://www.bsa.org.uk/policy/response/100557.htm> ).

CP 04/12, 2004: FSA and FOS, FSMA 2 Year Review; Financial Ombudsman Service (CP 04/12***, 2004, July 2004);

CP 05/4, 2005: FSA and FOS, FSMA 2 Year Review: Financial Ombudsman Service (CP 05/4*; March 2005);

CP 4: FSA, Consumer Complaints (Consultation Paper 4, December 1997);

Consumer Panel, Report : Consumer Panel, Annual Report (2003/04);

DISP: FSA Handbook on Rules and Guidance ;

ECHR: European Convention on Human Rights;

FOS: Financial Ombudsman Service;

FSA: Financial Services Authority;

FSMA 2000: Financial Services and Markets Act 2000;

FSOS: Financial Services Ombudsman Scheme Ltd;Kempson et al : E Kempson, S Collard and N Moore, Fair and Reasonable: An Assessment of the Financial Ombudsman Service (Personal Finance Research Centre, University of Bristol, July 2004);

NCC: National Consumer Council;

NCC, Appeal : National Consumer Council, An Appeal From Consumers (2005); PFB: FSA Principles for Business;