In his review of the FOS, Lord Hunt called for a public interactive system to be developed as the main means of conveying details of its practice and decisions to the industry and consumers.
Speaking at Adviser Live 2008 in London, Aifa deputy director general Fay Goddard said it could potentially become another rulebook.
She said: “It is quasi-regulation if it is not controlled. We are getting very nervous about this becoming second-tier regulation.”
Goddard said it would be wrong to rebrand the FOS as the Financial Complaints Service, which was another of Lord Hunt’s recommendations, as it would confuse consumers and encourage them to refer complaints in the first instance, rather than using the service as a last resort.
She said the Hunt review made some valuable recommendations but Aifa is unhappy that a 15-year long-stop and a joint liability process were not among them. She said: “The recommendations will go some way in improving the existing service but this is evolution, not revolution.”