Monetary Ombudsman Service chief exits after board clashes

The pinnacle of the Monetary Ombudsman Service (FOS) has successfully been compelled out of the position 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 charge for claims administration corporations (CMCs).

Britain’s banks and insurers have lengthy argued for a charge to be imposed on CMCs that may deter spurious ambulance-chasing, with the FOS proposing final Might to ascertain a £250 cost.

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Ms Thomas, who joined the FOS lower than two-and-a-half years in the past as chief govt and chief ombudsman, is claimed 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 latest weeks as they search desperately for tactics to kickstart development within the economic system.

That strain resulted within the ousting of the Competitors and Markets Authority chairman final month, and one financial institution govt stated that Ms Thomas’s exit – whereas circuitously instigated by ministers – was a mirrored image of the identical temper.

Rachel Reeves, the chancellor, lately moved to intervene within the automobile 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 response to guidelines revealed 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, overlaying the Chief Ombudsman position and the Chief Finance and Threat Officer, Jenny Simmonds, overlaying the Chief Govt position,” the FOS stated.

Baroness Manzoor added: “On behalf of the board and the manager, I wish to report our thanks and need Abby each success in her future profession.”

Ms Thomas stated: “It has been an absolute privilege to steer the Monetary Ombudsman Service by means of this era of speedy transformation and innovation.

“I’m immensely grateful to the complete Ombudsman crew for all the pieces that they do to assist our clients and construct confidence within the monetary companies trade.”

A spokesperson for the FOS stated it will not remark past the assertion on its web site.

Ms Thomas couldn’t be reached for remark.