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However, Chris Cummings, director general of Aifa, has expressed concerns the report has not gone far enough.

Lord Hunt’s report follows a six-month review of the FOS and how it interacts with the rest of the financial services community. It was compiled following a process of consultation with those who use the service with the aim of improving accessibility and transparency.

Among the findings, Lord Hunt stated charging consumers to use the service would “comprehensively damage accessibility”. He also recommended no changes be made to the ombudsman’s current approach to formal hearings, nor believed there was a “convincing case” for an external appeals mechanism on top of the current internal appeals procedure.

Lord Hunt also concluded there was no requirement for a dedicated small firms’ division, recommending instead the ombudsman’s Smaller Business Taskforce continue to focus on the specific needs of small companies.

Sir Christopher said: “Lord Hunt has listened over the last six months to the full range of comments, opinions, ideas and suggestions on how the ombudsman service should position itself in relation to the outside world. In leading his independent review, he has established a consensus on which we can build as we approach out first full decade.

“The board and management of the ombudsman service are committed to taking forward the actions needed to ensure that accessibility and openness are at the very heart of our service, as we evolve to face new challenges in a changing world.”

Mr Cummings was less positive about the findings and also conscious of the cost implications. “We were expecting the Hunt Review to go much further with its recommendations,” he said. “The industry is ready for, and was expecting, a much more comprehensive review. All of these recommendations will come at a cost and we must be mindful of where the funding will come from.

“The Hunt Review has highlighted many areas where the FOS needs to improve its operations. Many of these have a cost impact and we would expect any proposals to increase fees for our members to be subject to a full cost benefit analysis.”