IFAs demand court appeals of FOS decisions

An overwhelming majority of IFAs have called for the right to be able to appeal Financial Ombudsman Services (FOS) decisions in the courts.

At present, complainants can reject an adjudication and take the matter to the courts while advisers have to accept any decision, with their only recourse being the possibility of a judicial review.

However, a survey of 302 advisers by PanaceaIFA found 98% would like to see the court appeal route open to IFAs too.

The survey also found 82% of respondents did not think FOS adjudications are fair, while 92% said adjudicators do not have a solid industry understanding of industry issues.

Almost two-thirds (64.2%) of IFAs also said they had experienced false or manufactured accusations from complainants in an attempt to gain compensation.

PanaceaIFA said: "The FOS is no longer being seen to investigate complaints fairly, on the basis of documentary evidence available and/or on the balance of probability with many IFAs expressing concern if not actual incredulity about some of the adjudication outcomes.

"This is made worse because within this process, the FOS allows IFAs no affordable appeal process other than a judicial review against what are seen as flawed decisions."