Liam Coleman has been appointed interim chair of the Financial Ombudsman Service, which is present process widespread adjustments to cut back its powers and pace up its claims procedures.
Coleman (pictured), a former chief govt officer of The Co-operative Bank, will take up the position on 10 October, succeeding Baroness Zahida Manzoor, who steps down after two phrases protecting six years within the publish.
The appointment was made by the Financial Conduct Authority, which has the ability to fill this publish, with approval from the Treasury.
The Financial Conduct Authority stated 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 stress to calm down laws to fall in keeping with the federal government’s development agenda.
Earlier this month, Economic Secretary to the Treasury Emma Reynolds accomplished a evaluate into the Financial Ombudsman Service to make sure it doesn’t act like a “quasi-regulator” and has a higher stage of deference to the FCA.
As a results of the evaluate, the Financial Conduct Authority and the Financial Ombudsman Service will work collectively on high-volume complaints between customers and companies to chop the time it takes to settle disputes.
The regulators may even 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 known as for reform of the Financial Ombudsman Service after routinely making “choices that transcend FCA guidelines create authorized uncertainty”.
FoS additionally confirmed that the curiosity utilized to some awards it directs companies to pay will probably be reduce to trace the Bank of England’s base common price plus-1%.
This falls from the earlier price 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 totally different ranges of case charges for monetary companies, to make the system fairer and assist early decision”.
Also, this month, the Treasury Committee launched a report, which stated that the departure of the previous Financial Ombudsman Service chief govt Abby Thomas in February was attributable to a “collapse in confidence following elementary disagreements with the board on technique, administration and operations”.
The committee additionally criticised Baroness Manzoor, who it stated was “disrespectful” when she “refused to reply questions on the departure of the chief govt” when she appeared earlier than the committee, additionally in February.
Treasury Committee chair Dame Meg Hillier stated: “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 and frustrate a House of Commons Committee from scrutinising the actions of a publicly accountable organisation finally proved unsuccessful.
“I hope this sends a transparent message to any organisation contemplating related motion in future that Members of the House of Commons may 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 stated: “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 intently with the board, govt 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 govt Jenny Simmonds.
