FOS Criticised by Insurance Lawyer
Friday 6 December 2013 @ 10.52 a.m. | Legal Research
Wotton + Kearney partner Cain Jackson, a leading Australian insurance lawyer, has commented that the Financial Ombudsman Service (FOS) lacks sophistication and resources. This was said as a member of the six personal panel at the Thought Leadership breakfast on consumer protection regulation in Sydney on 26 September.
The FOS is a service aimed at providing a forum for member financial services providers to resolve disputes with consumers or small businesses. The dispute resolution process provided by the service also covers disputes in banking, general life insurance and financial planning sectors, in addition to managed funds and pooled superannuation trusts. The service has a maximum award amount of $150,000 for general insurance and $280,000 for investment disputes.
“I don’t think it is the appropriate forum to hear claims of $280,000,” said Jackson, who added he often acts for clients where disputes heard by FOS aggregate to values in excess of $1 million.
Jackson said that the jurisdictional limitation on the FOS as well its lack of resources is still far too high for the sophistication and procedural certainty that is to be expected of the service. He added that the service’s term of reference have not kept up with the nature and complexity of the disputes that are now appearing before it.
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