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The Hunt Review conducted by Lord Hunt of Wirral was an independent review of the Financial Ombudsman Service (FOS).

Chris Cummings, director general of Association of Independent Financial Advisers (AIFA), said: "We were expecting the Hunt Review to go much further with its recommendations. The industry is ready for, and was expecting, a much more comprehensive review.”

He praised the findings that the entire Ombudsman organisation needed to be sensitive to the particular needs of small businesses and expand its team to include external representatives from this area.

However, he was disappointed that Hunt did not accept AIFA calls for the introduction of oral hearings and suggested that the introduction of oral hearings should be reconsidered at the end of the pilot project.

Looking at the issue of compensation for claimants, AIFA said: "We are pleased that the Hunt Review has recommended FOS provide clear figures on compensation for claimants.

"This is an improvement on the current system of just providing a formula for claims. At least we will have the true figure of the amount of compensation awarded by FOS and know who the main culprits are."

AIFA also said that it supported the issue of complaints management companies (CMCs) abusing the free service offered by FOS and that case fees should be charged to CMCs found to be submitting vexatious claims but again reiterated its disappointment that this did not go further to charge anyone doing so.

The review also suggested that the profile of FOS be raised with consumers, but AIFA said it had severe concerns about possible misinterpretation.

"It must be made clear to consumers that FOS is an arbitration service. Consumers should only refer to FOS if they have failed to reach agreement with the firm involved.

"Miscommunication of this point could result in the Ombudsman being inundated with complaints."

AIFA also pointed out that because the review highlighted many areas where FOS needs to improve, this could have a cost impact.

"We would expect any proposal to increase fees for our members to be subject to a full cost benefit analysis."