The LIA is calling on the FSA and Financial Ombudsman Service to publish annual statements on the health of the financial services industry.
In a written response to consultation paper 04/12 on the ombudsman service, LIA public affairs director John Ellis says an annual health statement would draw attention to areas of concern and also areas where industry performance is satisfactory or above average.
The LIA says it supports the idea of a panel of industry and consumer representatives to discuss market issues and contribute to overall judgements.
But the LIA opposes an appeal mechanism for the FOS, believing it would not offer any benefit and just add cost to the system.
Only 8 per cent of 97,901 cases referred to the service last year got as far as a decision from the ombudsman. The LIA says the cost to the industry and the consumer of an appeal process would outweigh any benefits.
The LIA has also called for greater publicity and explanation where some FOS cases are taken over by the FSA if it is felt that the complaint points to a wider industry issue that ought to be explored.
Ellis says: “A balanced view could be presented of each sector on an annual basis which could provide the opportunity for wider comment and leadership by those who wish to adopt a constructive approach to industry problem solving.
“We believe the drive for appeals to the ombudsman is backed by a small number of individuals in the marketplace.”