Financial Ombudsman Service (FOS) chairwoman Baroness Manzoor is stepping down in August – the second senior person to leave the ombudsman in a week.
Manzoor’s departure follows hot on the heels of CEO and chief ombudsman Abby Thomas who announced she was stepping down immediately last week.
The two departures follow a report from Health & Protection in November that Chancellor Rachel Reeves had outlined an overhaul and modernisation of the FOS in her Mansion House speech, with the aim of reducing uncertainly in its decisions for customers and the industry.
Treasury Committee
Meanwhile, the Treasury Committee has today written to the Financial Conduct Authority (FCA) and FOS to find out more about the circumstances which surrounded the departure of Thomas last week.
The letter follows a session earlier today in which members of the Committee expressed that they were not satisfied that they had received the answers to their questions on the subject.
In the letters, MPs raised concerns that the circumstances surrounding Thomas’ departure did not appear to be fully shared with the Committee.
This has prevented Members from forming a full understanding of the process which led to her exit and what it means for the administration of the FOS, the correspondence goes on to say.
Among its list of requests, the Committee asked for further information on the events which surrounded Ms Thomas’ departure and the nature of the discussions as they progressed.
FOS revealed it will start a nationwide search shortly for Baroness Manzoor’s successor through an “open, fair, and competitive” recruitment process.
Honour and privilege
Baroness Manzoor said: “It has been an honour and privilege to have served as the chairman of the Financial Ombudsman Service over the last six years. In that time, much has been achieved.
“We have streamlined the Financial Ombudsman Service, introducing new service standards with a focus on timeliness, tackling older cases, improving quality, and better customer service.
“Key priorities have included driving forward the implementation of rule changes to permit the charging of case fees to Claims Management Companies and other professional representatives whilst ensuring significant consumer safeguards.
“This is an important and very significant milestone in financial services.
“But there is still more to do. There must be greater use of technology to implement new ways of working and a greater emphasis on ensuring both the Financial Ombudsman Service and the Financial Conduct Authority continue to act effectively.
“The joint Call for Input is an exciting opportunity to refresh the Dispute Resolution Rules and modernise the redress system, enabling a focus on the ombudsman service’s core statutory mission of resolving consumer-type disputes impartially, quickly and with minimum formality.
“As the chancellor has acknowledged, the Financial Ombudsman Service plays a vital and independent role in the financial redress system.
“I will continue to work with all our stakeholders to deliver the best possible service for all our customers as we move forward.”
Positive change
Ashley Alder, chairman of the Financial Conduct Authority, added: “The Financial Ombudsman Service has pursued an ambitious programme of improvement over Baroness Manzoor’s time as chairman.
“A commitment to positive change — together with her determination and boundless energy — has been instrumental in driving a series of ambitious initiatives directed at benefiting the thousands of consumers who rely on the service every year.”
