The Financial Ombudsman Service (FOS) has been granted the power to deal with complaints relating to products sold prior to FSA regulation.
Under the original plans, only consumer complaints relati ...
The Financial Ombudsman Service (FOS) has been granted the power to deal with complaints relating to products sold prior to FSA regulation.
Under the original plans, only consumer complaints relating to products sold after 14 January 2005, which could not be resolved by brokers, would be referred to the FOS.
But late last year the Treasury consulted about extending FOS powers to cover complaints made after that date about products sold by GISC-regulated brokers before the beginning of statutory regulation.
In an announcement on 20 February, the Treasury ruled that in order to ensure a "seamless transition" for consumers, the remit of the FOS would be extended, despite broker opposition.
The Broker Network chief executive Grant Ellis said that in light of the announcement, the FOS should explain what parameters it would use to judge retrospective complaints.
"What standard of sale is the FOS expecting?" Ellis said. "The rules governing the sale of those policies before FSA regulation are different from the rules afterwards."
Ellis also criticised the decision for unfairly penalising GISC brokers.
"It singles out those that are more professional in a more onerous regime," he said.
