Professor Hodges presents design of new Financial Ombudsman for SMEs to Treasury Select Committee
On 23 October, FLJS Board Member Professor Christopher Hodges gave evidence to the House of Commons Treasury Committee as part of the Report by Simon Walker CBE into new routes for small and medium-sized businesse (SMEs) to challenge banks.
The Review was commissioned by the banking association UK Finance, and recommended that
- A new Financial Ombudsman function should resolve disputes between SMEs and banks, assisted by a new expert advisory body on legal and banking issues; this should build on and extend proposals just released by the Financial Conduct Authority for extending the jurisdiction of the Financial Ombudsman Service, by expanding a similar voluntary scheme for larger SMEs.
- Data on issues identified should be fed back to the FCA, banks and SMEs, as part of a regulatory function that improves the practice of both banks and SMEs.
- A formal process should seek to achieve reconciliation and closure of historical issues.