FOS defends its performance
The resolution of disputes between financial planning firms and their clients before they reach the external disputes resolution processes of the Financial Ombudsman Services (FOS) represents a good outcome, according to FOS company secretary Nicolas Crowhurst.
Participating in a Money Management/Lawyers Weekly thought leadership breakfast, Crowhurst was reacting to a statement by specialist lawyer Christina Kalantzis about the increasing desire of planning firms to resolve issues with clients without reference to FOS because of concerns about the effectiveness of the organisation.
However Crowhurst defended both the integrity and performance of FOS, arguing that a statistical analysis of the outcomes it delivered confirmed it was delivering on its charter.
A number of speakers at the breakfast suggested that external dispute resolution and the role of FOS should be a part of the agenda for the new Coalition Government's promised "son of Wallis" financial system review.
At least one member of the audience questioned the scope of claims that FOS should be empowered to handle, commenting that it should be confined to handling disputes involving amounts of as little as $20,000.
FOS is currently empowered to handle maximum award amounts of $150,000 for general insurance broking disputes and $280,000 for investment disputes and all other disputes under its terms of reference.
One of the keynote speakers at the breakfast, Wotton Kearney partner Cain Jackson, suggested that financial planners had become targets for litigation by particular law firms because of the nature of their industry and its level of regulation.
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