Phil, you seem to think that FOS operates on an "innocent until proven guilty" type of framework. The issue for the adviser is that FOS does not have to prove you misdiagnosed, you have to prove you didn't. At FOS, it is "Guilty until proven innocent". As you have also said, it is quite subjective, so good luck proving you didn't misdiagnose.
In order to give you the best site experience, we need to know what kind of investor you are. Please select the title that best describes you below.
Financial Advisers - Investment
Financial Advisers - SMSFs
Individual Investors with SMSFs
Financial Advisers - Insurance
Accountants and Solicitors
Financial Services Professional