No need for planner appeal option: FOS
The Financial Ombudsman Service (FOS) has hit out at recent industry suggestions that planners should have the right to appeal against determinations brought against them by the Ombudsman.
In a FOS statement sent to Money Management, Chief Ombudsman Colin Neave (pictured) expressed surprise at recent comments by planners that they should be able to appeal determination decisions against them to the High Court in the case of large amounts of compensation.
Some advisers also suggested that FOS was operating on unwritten law, and was allowed to award too much compensation to consumers in determination cases.
Neave defended FOS’s Ombudsmen and panel determinations as “fair, legally robust and transparent” and decided by individuals with years of industry and legal experience.
Neave said he was “astounded” at industry claims that cases were being decided by people without any legal training.
“All FOS Ombudsman are selected on the basis of their legal experience and many years of industry experience. In addition, FOS has a large team of legally trained staff who handle complains on behalf of consumers and small business,” Neave said.
Most of their consumer representatives are also legally qualified and industry representatives are experienced practitioners, Neave added.
FOS’s decision-making process was designed to meet Australian Securities and Investment Commission guidelines, Neave said.
“It is a requirement of ASIC Regulatory Guide 139 that an approved External Dispute Resolution Scheme is able to make binding decisions,” Neave said.
FOS expects advisers to adhere to their legal obligations and to give advice that meets industry standards, he added.
FOS Ombudsman for Investments, Life Insurance and Superannuation Alison Maynard said that in all cases, FOS considered the relevant law and investigated the legal obligations of advisers, good industry practice and what was “fair under the circumstances”.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
