OMBUDSMAN’S THOUGHTS ON A BETTER FUTURE FOR FINANCE

A man with one of the widest influences on the financial industry told a Norwich audience how he thought the sector could rebuild its reputation for the future.

David Thomas, Principal Ombudsman at the Financial Ombudsman Service (FOS), delivered the Prestige Lecture at a joint event organised by the Financial Industry Group and ifs School of Finance recently at Norwich's Financial Services Academy.

And he stayed on to give some straight answers to an array of lively questions from the 80-strong audience representing all aspects of the financial world, including pensions, insurance, banking, accounting and legal.

“The wide range of professions represented in our audience is mirrored in one man,” said FIG Director and host for the evening, Marjorie Eade, who outlined Mr Thomas's career and variety of key responsibilities.

“His sphere of influence is vast and he is helping determine the environment in which we will be operating in future.

"There is an undercurrent of uncertainty in financial services but today we have a very special opportunity to seek the views of a man who not only resolves disputes but has a far-reaching influence over the rules that we as financial services businesses will need to comply with,” she said.

The FOS is the largest ombudsman service in the world with a staff of 1,000 and dealing with complaints by individuals and SMEs against financial providers including 21,000 retail firms and 100,000 others with consumer credit licences.

Last year it handled 800,000 enquiries and 130,000 disputes. By comparison, in 2001, when FOS was established, it handled 30,000 cases.

Credit card default charges and payment protection insurance are areas of concern and Mr Thomas's role also includes close liaison with major organisations which include the Financial Services Authority and the Office of Fair Trading.

To help restore the reputation of financial services Mr Thomas emphasised the importance of qualifications and skills and the need to ensure that “when customers purchase a product they know what the deal is.”

He qualified as a lawyer in 1969 and went on to head a firm of lawyers in London and Liverpool before becoming Banking Ombudsman in 1997. On the creation of the unified FOS in 2005, he was made Principal Ombudsman and Corporate Director.

After his talk on the Ombudsman Service, Mr Thomas deftly handled detailed questions on new financial services regulations, the Retail Distribution Review, product pricing and vexatious litigants.

Lawrence Britt, City College Lecturer asked him about bank charges, after closing one of his accounts, and he brandished the cheque he received for the net balance of 15p!

Mrs Eade reminded the audience at the National Skills Academy for Financial Services in Norwich of how Fig was strengthening Norwich's reputation as a leading centre of financial excellence in 3 ways:

• With its new website
• Lobbying on behalf of the industry on key issues such as regulation and
• Through links with the City of London and other leading UK financial centres.

“We have gained significant coverage for the cluster in an official UK glossy magazine and brochure which has been taken by every UK High Commission, every UK Consulate and every UK Embassy worldwide,” she added.

The Prestige Lecture was supported by Birketts LLP.

For more information on the Financial Ombudsman Service and to sign up for Ombudsman News the electronic newsletter please visit http://www.financial-ombudsman.org.uk/