No need for planner appeal option: FOS
The Financial Ombudsman Service (FOS) has hit out at recent industry suggestions that planners should have the right to appeal against determinations brought against them by the Ombudsman.
In a FOS statement sent to Money Management, Chief Ombudsman Colin Neave (pictured) expressed surprise at recent comments by planners that they should be able to appeal determination decisions against them to the High Court in the case of large amounts of compensation.
Some advisers also suggested that FOS was operating on unwritten law, and was allowed to award too much compensation to consumers in determination cases.
Neave defended FOS’s Ombudsmen and panel determinations as “fair, legally robust and transparent” and decided by individuals with years of industry and legal experience.
Neave said he was “astounded” at industry claims that cases were being decided by people without any legal training.
“All FOS Ombudsman are selected on the basis of their legal experience and many years of industry experience. In addition, FOS has a large team of legally trained staff who handle complains on behalf of consumers and small business,” Neave said.
Most of their consumer representatives are also legally qualified and industry representatives are experienced practitioners, Neave added.
FOS’s decision-making process was designed to meet Australian Securities and Investment Commission guidelines, Neave said.
“It is a requirement of ASIC Regulatory Guide 139 that an approved External Dispute Resolution Scheme is able to make binding decisions,” Neave said.
FOS expects advisers to adhere to their legal obligations and to give advice that meets industry standards, he added.
FOS Ombudsman for Investments, Life Insurance and Superannuation Alison Maynard said that in all cases, FOS considered the relevant law and investigated the legal obligations of advisers, good industry practice and what was “fair under the circumstances”.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
