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White paper: Govt to review role of FOS and FSCS

The Government is to review the role of the Financial Ombudsman Service and the Financial Services Compensation Scheme as part of a raft of banking reforms announced today.

In the Treasury white paper released today, the Government said it would be reviewing the governance and accountability of the FOS and the FSCS in light of the economic crisis.

The Government has stressed this review will not compromise either organisations’ independence or role in the regulatory system.

In addition the FOS will focus its next three-year review on its efficiency and effectiveness similar to the 2007 review of the FSA that the Treasury commissioned from the National Audit Office.

The paper says: “Although the recent challenges to financial stability have not impacted upon the role of the FOS in the same way as they have for the FSCS, the Government believes that it would be appropriate similarly to review the governance and accountability of the FOS to ensure that the arrangements remain fit for purpose under these new circumstances.

“To that end, the Treasury, the FOS and the FSA will review these issues, reporting towards the end of the year. Any resulting proposals will not, however, undermine or compromise the FOS’s independent position and role in the regulatory system.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. So what is the point of a review
    if government has no plans to “compromise either organisations’ independence or role in the regulatory system.”

  2. Julian Stevens 8th July 2009 at 3:17 pm

    White paper: Govt to review role of FOS and FSCS
    If the FSA did its job properly, the caseload of the FOS would be vastly smaller and so would the sums of money paid out by the FSCS, thereby saving us all a ton of money every year. But then Club Regulatoire would contract instead of continue to expand exponentially and lots of people would lose those comfy fat cat jobs we all have to fund every year under pain of confiscation of our livelihoods.

  3. The Mystery Shopper for IFAs 8th July 2009 at 3:17 pm

    Current system has failed
    When will they learn, this tripart system does not work at all. Crash Gordon is petrified of admitting his own failure with FSMA 2000. Shut the F-Pack down and start again. Banks should be regulated by the BOE and Insurers should be regulated by insurance company regulator set up by top industry people. And advisers selling packaged products should not be regulated at all as they have so many hoops to jump through already such as exams (licence), commission disclosure and cooling off notices. Nothing like to put prople off buying is there? Commissions should be brought back to encourage more to join the industry and earn real money and give consumers an incentive to buy. This helps investments into companies flourish and grow.

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