The Financial Conduct Authority (FCA) has been forced to appoint an interim chairman of the Financial Ombudsman Service (FOS) from the FCA board after admitting “the initial recruitment campaign proved unsuccessful”.
Liam Coleman has been appointed interim chairman of the FOS board until a permanent appointment is made, the FCA announced, taking up the role on 10 October.
The FOS has been under pressure over the last year with its chairman and CEO departing in quick succession and is facing the prospect of major overhaul led by chancellor Rachel Reeves and HM Treasury.
Coleman will leave his current position as non-executive director at the FCA to take up his role at the FOS. He joined the FCA board in November 2019.
He as more than 30 years’ extensive financial services, public sector and board experience.
He was previously chief executive officer of The Co-operative Bank, deputy group treasurer and group head of capital management at The Royal Bank of Scotland (RBS) and group director, treasury at Nationwide Building Society.
He currently chairs Great Western Hospitals NHS Foundation Trust and London and Quadrant Housing Trust, and is interim chair of Royal United Hospitals Bath NHS Foundation Trust.
Coleman succeeds Baroness Zahida Manzoor CBE, who announced she was stepping down in February after two terms in post.
Ashley Alder, chairman of the Financial Conduct Authority (FCA), said: “I am delighted that someone with Liam’s depth of experience will lead the Financial Ombudsman’s board during what is a pivotal time for the organisation.
“I want to thank Baroness Manzoor for all she’s done to steer an ambitious improvement programme at the ombudsman over the last six years.”
Coleman said: “I am honoured to take on the role of interim chair at the Financial Ombudsman Service. It plays a vital role in upholding fairness and trust in the financial system.
“I look forward to working closely with the board, executive team, and our wider stakeholders – including the Treasury and the FCA.”
Significant reforms
In November 2024, chancellor Rachel Reeves set out significant reforms to be made to the FCA and FOS.
This included an overhaul and replacement of the FCA Certification Regime which applies to staff below senior management level and a coming consultation on the advice-guidance boundary.
Earlier this month Health & Protection reported that a 10-year long stop on claims made to FOS may exclude most protection products as part of an exemption proposed by HM Treasury (HMT).
The consultation proposing the absolute 10-year time limit includes scope for exemptions for longer-term products “such as pensions, mortgages and long-term investments”.
Further details will be published in the autumn, alongside wider proposals to modernise the redress system.
