PARLIAMENTARY WRITTEN QUESTION
Financial Ombudsman Service: Parliamentary Scrutiny (30 September 2020)

The freedom of the Financial Ombudsman Service (FOS) to operate is strictly governed by the framework of duties set out in legislation by Parliament. The Financial Services and Markets Act 2000 required the Financial Conduct Authority (FCA) to establish the FOS as an independent body which can resolve disputes quickly and with minimum formality. The FOS must make determinations on complaints by reference to what is (in the opinion of the ombudsman) fair and reasonable in all the circumstances of the case. The FOS and the FCA maintain arrangements for the investigation of complaints, and their decisions can also be subject to judicial review.

The Government believes that it is vitally important that the FOS should be accountable for its performance and the quality of its work. The FCA’s appointment of the Chair of the FOS is subject to approval by the Treasury, on behalf of the Government. The FOS is also required to send a copy of its annual accounts to the Comptroller and Auditor General, whose report must then be laid before Parliament by the Treasury.

To ensure transparency, the FOS must also publish reports of determinations (unless, in the ombudsman’s opinion it would be inappropriate). This ensures that the public, including Parliament, have a full and balanced picture of the decisions the FOS reaches.