FSA ACTS AGAINST FIRMS FLOUTING OMBUDSMAN RULINGS
29 Apr 2003 02:15 PM
In two precedent setting cases, the Financial Services Authority
(FSA) has withdrawn the authorisation of two firms of independent
financial advisers that have failed to comply with Ombudsman awards.
- Tudor House Financial Services of 34 Chester Street, Wrexham, LL13
8AH failed to comply with 5 Ombudsman awards made in favour of
customers and also failed to co-operate with an investigation by
the Financial Ombudsman Service of a further complaint made by one
of its customers.
- William's Life Pension Mortgage and Insurance Services of 48 South
Street, Ilkeston, Derbyshire, DE7 5QN failed to comply with 2
Ombudsman awards.
John Tiner, Managing Director at the FSA, said:
"Firms must comply with the Ombudsman's decisions. If they do not we
will not hesitate to take action against them.
"The Financial Ombudsman Service is a vital part of the regulatory
apparatus and consumers must be confident that they will be treated
fairly and their rights protected.
"The vast majority of firms co-operate with the Financial Ombudsman
Service and its decisions and it is only fair that we act against
firms that attempt to flout the system."
NOTES TO EDITORS
1. The Financial Ombudsman Service (FOS), like the former Personal
Investment Authority Ombudsman, was set up to provide an independent
and binding right of recourse for consumers, including the award of
compensation, when a consumer is unhappy with the outcome of the
firm's own investigation into their complaint.
2. The FSA has not been given the powers to pay redress itself. Where
firms do not meet the Ombudsman awards, the FSA's powers limit them
to stopping firms from carrying out any activities regulated by the
FSA. Awards made by the FOS may be enforced by the consumer through
the Courts either by way of an injunction or in respect of a money
award as if it were a County Court judgement.
3. Details of the FSA's action against the firms may be found on the
FSA's Register of firms (www.fsa.gov.uk).
Tudor House Financial Services
FSA reference number is 116172.
The partners of Tudor House Financial Services are: Mr Leslie Smith,
Mr Martin Chidley and Mr David Williams.
As an interim measure, to protect consumers, action was taken by the
FSA in November 2002 to prevent Tudor House Financial Services with
immediate effect from carrying on any activities regulated by the
FSA. Tudor House Financial Services challenged the action taken by
the FSA by appealing to the Financial Services and Markets Tribunal.
In March 2003, Tudor House Financial Services withdrew its appeals,
enabling the FSA to continue the process of withdrawing Tudor House
Financial Services' authorisation.
William's Life Pension Mortgage and Insurance Services
FSA reference number is 136217.
The partners of William's Life Pension Mortgage and Insurance
Services were Mr William Matthews and Mrs Patricia Matthews
As an interim measure, to protect consumers, action was taken by the
FSA in November 2002 to prevent William's Life Pension Mortgage and
Insurance Services with immediate effect from carrying on any
activities regulated by the FSA. William's Life Pension Mortgage and
Insurance Services challenged the action taken by the FSA by
appealing to the Financial Services and Markets Tribunal. In December
2003, the Financial Services and Markets Tribunal gave a direction to
defer the effect of the FSA's action until after, and subject to the
outcome of, the appeal. In January 2003, the FSA received
notification that the partnership of William's Life Pension Mortgage
and Insurance Services had dissolved in August 2002. By the
dissolution of the partnership, William's Life Pension Mortgage and
Insurance Services had ceased to exist as a legal regulated entity,
and is therefore no longer authorised to carry on any activities
regulated by the FSA. William's Life Pension Mortgage and Insurance
Services withdrew its appeal.
4. The Financial Services and Markets Tribunal is run by the Lord
Chancellor's Department, and is fully independent of the FSA. It
hears cases referred to it by those who wish to contest the FSA's
decisions, for example, to withdraw authorisations to conduct
investment business.
5. The FSA regulates the financial services industry and has four
objectives under the Financial Services and Markets Act 2000:
maintaining market confidence; promoting public understanding of the
financial system; the appropriate degree of protection of consumers;
and fighting financial crime.
6. The FSA aims to maintain efficient, orderly and clean financial
markets and help retail consumers achieve a fair deal.
ENQUIRIES Public: FSA Consumer Helpline 0845 606 1234 Website:
www.fsa.gov.uk
25 The North Colonnade Canary Wharf London E14 5HS, United Kingdom
Registered as a Limited Company in England and Wales No 1920623.
Registered office as above