Enforcement of money awards and the Financial Ombudsman

John Virgo and Philip Ryley take a look at the basis for enforcement of money awards through the County Court made by the Financial Ombudsman Service.

Philip Ryley is an Associate and Head of Financial Services Regulation at TLT Solicitors, Bristol and London specialises in FSA enforcement and supervision matters.

Part XVI of the Financial Services and Markets Act 2000 (FSMA) provides for the scheme which is known as the Financial Ombudsman Service (FOS). [1] Operation of the scheme is governed by rules made by the Financial Services Authority found in the DISP section of its Handbook. It is intended as a scheme “under which certain disputes may be resolved quickly and with the minimum of formality." [2] Section 229 of FSMA provides two potential remedies by way of enforcement: a direction under section 229(2)(b) that the respondent take such steps in relation to the complaint as the Ombudsman considers just and appropriate or a determination that the complainant is entitled to an award against the respondent of such an amount the Ombudsman considers fair compensation for loss and damage (“a money award”). Where a complainant to FOS accepts any award made, it is binding on the respondent firm ( section 228(5) ).