MEP demands better qualified ombudsmen

The publication of decisions made by the Financial Ombudsman Service would help IFAs do their job, Godfrey Bloom, MEP for Yorkshire and North Lincolnshire, told FTAdviser.

According to Mr Bloom, the ombudsman works outside the “fundamental principles” of English law.

He pointed out the “fundamental presumption” of innocence is not extended to IFAs as rather than innocent until proven guilty, “IFAs have to prove they are not guilty and that is a massive breach of fundamental English law”.

Mr Bloom questions why IFAs do not have a court of appeal.

He said: “Where is the Court of Appeal? There is not one. There is a judicial review, yet there are massive differences between the two.”

A lawyer told FTAdviser that a judicial review is an action brought to question the legality of decisions made by government or a similar body whereas the court of appeal is an appeal against a court case that has been lost.

He emphasised the fact the two are not interchangeable.

Mr Bloom, among other commentators, also questioned the refusal by Fos adjudicators and ombudsmen to reveal their qualifications.

He said: “Now you would expect, if you were up for murder and your life was on the line, as it is indeed with small IFAs as very often it is the life of the business (that is at risk), that the judge and barristers involved would be qualified.

“I would expect them to be qualified. How can they insist that you have a G60 qualification for example, as it is a serious regulatory offence if you give advice without it, when no one knows if they are qualified to look at the case.”

Mr Bloom goes even further, stipulating adjudicators and ombudsmen should have more qualifications than IFAs, post Retail Distribution Review.

He said: “They should have level six qualifications post-RDR and five years practising experience, whether that be pensions or investments, so the person adjudicating is actually qualified.

“Can you imagine the BMA not having a qualified doctor to review whether a doctor should have his practising certificate withdrawn?”

A spokesperson for the Fos said: “We are satisfied that the ombudsman’s procedures comply with all legal requirements - and a judgment from the European Court of Human Rights - the ultimate ‘appeal court’ - in June 2011 confirmed that the ombudsman operates fully within the rule of law and complies with the European Convention on Human Rights.”