UK to broaden access to financial ombud in wake of bank scandals
London — More companies should be allowed to complain to the Financial Ombudsman Service to seek redress if they feel they have been treated badly by their banks, Britain’s markets watchdog said on Monday. The Financial Conduct Authority said only very small firms with fewer than 10 staff and a balance sheet of up to £2m have access to the ombud, which can arbitrate on a complaint and order compensation. The FCA came under pressure from MPs to extend access to the FOS following scandals at Royal Bank of Scotland and Lloyds Banking Group, both of which got state bail-outs during the financial crisis. Without access to the free FOS resolution service, a business would have to take a bank to court, a costly and time-consuming process. "Our evidence suggests some small businesses currently find it hard to achieve a fair outcome in disputes with financial services firms because court action is not a realistic option for them," FCA CEO Andrew Bailey said. The FCA proposals extend this acc...
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