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Written question asked by Jacob Rees-Mogg (Conservative) on Tuesday, 14 May 2024, in the House of Commons. It was due for an answer on Thursday, 16 May 2024. It was answered by Bim Afolami (Conservative) on Wednesday, 22 May 2024 on behalf of the Treasury.

Ascot Lloyd: Compensation

Question

To ask the Chancellor of the Exchequer, if he will take steps to require Ascot Lloyd to pay the amount of compensation to customers recommended by the Financial Ombudsman Service.

Answer

Parliament set up the Financial Ombudsman Service (FOS) to decide complaints quickly as an alternative to the courts – not to act as a law enforcer. However, firms that are regulated by the Financial Conduct Authority (FCA) are required under the FCA’s rules to co-operate with the ombudsman.

Following a consumer’s acceptance of the ombudsman’s final decision, this becomes binding on the firm. Firms are required to comply promptly with any decision that ombudsmen may make, including decisions on compensation.
If a firm fails to comply with the Ombudsman's decision, under the legislative framework, a complainant can enforce the decision through the courts. A money award can be recovered by execution of a county court order, while compliance with a direction is enforceable by way of an injunction. This does not require the merits of the case to be considered again by the court.

Secondary information

Type
Written question
Reference
26144
Session
2023-24
Grouped for answer
Yes
Subjects
Compensation Financial Ombudsman Service Ascot Lloyd
Contains statistics
Yes
Link
View this Written question on www.parliament.uk