The pinnacle of the Monetary Ombudsman Service (FOS) has successfully been pressured out of the function after shedding the boldness of its board amid rising authorities strain on financial watchdogs.
Sky Information understands that Abby Thomas, whose departure was introduced earlier on Thursday, was on the centre of a number of disputes with fellow administrators over points together with the introduction of a payment for claims administration corporations (CMCs).
Britain’s banks and insurers have lengthy argued for a payment to be imposed on CMCs that might deter spurious ambulance-chasing, with the FOS proposing final Might to determine a £250 cost.
Cash newest: Pound falls as Bank of England deals growth blow to chancellor
Trade executives stated that Ms Thomas had argued for a a lot decrease payment – stated to be as little as £25.
Ms Thomas, who joined the FOS lower than two-and-a-half years in the past as chief government and chief ombudsman, is alleged by insiders to have misplaced the boldness of the organisation’s chair Baroness Manzoor.
The prime minister, chancellor and enterprise secretary have been intensifying strain on regulators in current weeks as they search desperately for methods to kickstart development within the financial system.
That strain resulted within the ousting of the Competitors and Markets Authority chairman final month, and one financial institution government stated that Ms Thomas’s exit – whereas in a roundabout way instigated by ministers – was a mirrored image of the identical temper.
Rachel Reeves, the chancellor, lately moved to intervene within the automotive mortgage suppliers authorized motion which threatens to saddle lenders with compensation payments operating to many billions of kilos.
In its assertion on Thursday, the FOS – which is operationally impartial however handles complaints in accordance with guidelines printed by the Monetary Conduct Authority (FCA) – famous merely that Ms Thomas was “stepping down”.
The FCA additionally appoints FOS board members, and its chair with the approval of the Treasury.
“Interim preparations will apply with the Deputy Chief Ombudsman, James Dipple-Johnstone, masking the Chief Ombudsman function and the Chief Finance and Threat Officer, Jenny Simmonds, masking the Chief Govt function,” the FOS stated.
Baroness Manzoor added: “On behalf of the board and the chief, I want to report our thanks and want Abby each success in her future profession.”
Ms Thomas stated: “It has been an absolute privilege to steer the Monetary Ombudsman Service by way of this era of fast transformation and innovation.
“I’m immensely grateful to all the Ombudsman crew for every little thing that they do to help our prospects and construct confidence within the monetary companies business.”
A spokesperson for the FOS stated it could not remark past the assertion on its web site.
Ms Thomas couldn’t be reached for remark.
