Aifa policy director Andrew Strange says: “As per Lord Hunt’s recommendation in his recent review of FOS, the increase in claims management company-introduced complaints from 19 per cent to 26 per cent of all cases demonstrates the need for CMCs to contribute to the funding of FOS.
“There is also further clear demonstration of the cross subsidisation of other financial institutions by the IFA profession, with IFAs contributing 5.6 per cent of the general levy, but only accounting for 3 per cent of complaints.”
Aifa is also calling on the FOS to be aware of the cost to the industry of its targets to resolve cases faster.
FOS says it is aiming to increase the number of complaints dealt with within three months from 30 per cent to 45 per cent.
Strange says: “Whilst timeliness is clearly important, the Ombudsman must be sensitive to the cost implications on the financial services industry in their significant levels of recruitment and ambitious targets. As an independent and impartial adjudicator, all stakeholders must be considered.”