Liam Coleman has been appointed interim chair of the Financial Ombudsman Service, which is present process widespread adjustments to cut back its powers and velocity up its claims procedures.
Coleman (pictured), a former chief government officer of The Co-operative Bank, will take up the position on 10 October, succeeding Baroness Zahida Manzoor, who steps down after two phrases masking six years within the submit.
The appointment was made by the Financial Conduct Authority, which has the facility to fill this submit, with approval from the Treasury.
The Financial Conduct Authority mentioned Coleman will chair the Financial Ombudsman’s board till a everlasting appointment is made, “after the preliminary recruitment marketing campaign proved unsuccessful”.
In a 30-year profession in monetary companies, Coleman has additionally labored as deputy group treasurer and group head of capital administration at The Royal Bank of Scotland and group director of treasury at Nationwide Building Society.
The Financial Ombudsman Service, like a number of regulators, is below strain to chill out rules to fall in keeping with the federal government’s development agenda.
As a results of the evaluation, the Financial Conduct Authority and the Financial Ombudsman Service will work collectively on high-volume complaints between shoppers and corporations to chop the time it takes to settle disputes.
The regulators may also work collectively “on particular or novel points [that] can jam the system and trigger important delays”.
The transfer comes after UK Finance, amongst different our bodies, had referred to as for reform of the Financial Ombudsman Service after routinely making “selections that transcend FCA guidelines create authorized uncertainty”.
FoS additionally confirmed that the curiosity utilized to some awards it directs corporations to pay shall be lower to trace the Bank of England’s base common fee plus-1%.
This falls from the earlier fee of 8%, which had remained unchanged for nearly 25 years.
The Financial Ombudsman provides that it “plans to seek the advice of later this summer time on completely different ranges of case charges for monetary corporations, to make the system fairer and assist early decision”.
Also, this month, the Treasury Committee launched a report, which mentioned that the departure of the previous Financial Ombudsman Service chief government Abby Thomas in February was as a consequence of a “collapse in confidence following basic disagreements with the board on technique, administration and operations”.
The committee additionally criticised Baroness Manzoor, who it mentioned was “disrespectful” when she “refused to reply questions on the departure of the chief government” when she appeared earlier than the committee, additionally in February.
Treasury Select Committee chair Dame Meg Hillier mentioned: “I’m afraid that the dealing with of this case by the senior management of the Financial Ombudsman Service has been deeply disappointing.
“The try to frustrate a House of Commons Committee from scrutinising the actions of a publicly accountable organisation in the end proved unsuccessful.
“I hope this sends a transparent message to any organisation contemplating related motion in future that Members of the House of Commons can have solutions to the questions they ask on behalf of the British public, whether or not senior officers try to dam them or not.”
Financial Conduct Authority chair Ashley Alder welcomed the expertise Coleman brings to the position.
Alder mentioned: “I’m delighted that somebody with Liam’s depth of expertise will lead the Financial Ombudsman’s board throughout what’s a pivotal time for the organisation.”
Coleman added: “I look ahead to working carefully with the board, government staff, and our wider stakeholders – together with the Treasury and the FCA.”
Day-to-day operations on the Financial Ombudsman Service are led by interim chief ombudsman James Dipple-Johnstone and interim chief government Jenny Simmonds.
