The Financial Conduct Authority (FCA) has defended the Financial Ombudsman Service (FOS) from allegations of inconsistent case verdicts.
In a guidance consultation on investment distribution models, it said it "should not be seen as surprising" that the Ombudsman reaches different decision on complaints which share surface similarities.
Earlier this year, the Association of Professional Financial Advisers (APFA) raised public concerns over the FOS's adjudicating, suggesting its decisions in cases involving advisers leaned towards the complainants.
But the FCA, which has been told the threat of action by the FOS is preventing the development of simplified advice models, has defended the ombudsman, saying it listens "to both sides of the story" and decides "each case on its individual facts and merits".
The fact that the [FOS] may arrive at different outcomes on separate cases should not be seen as surprising
"The law requires the [FOS] to decide each complaint on the basis of what it believes is fair and reasonable," it stated.
"The fact that the [FOS] may arrive at different outcomes on separate cases should not be seen as surprising. It is not a question of inconsistency, but a matter of the [FOS] looking at each complaint individually and making a decision on what it believes is fair and reasonable in the circumstances of that particular case.
"There may be surface similarities between some complaints. But when looked at in detail, the [FOS] generally finds that very different facts and issues are involved. This reflects the reality that everyone's personal and financial circumstances will be different."
Fair hearing
APFA director-general Chris Hannant had previously suggested the Ombudsman was looking to make awards to consumers and that similar cases achieved different outcomes depending on who from the FOS adjudicated.
"[APFA members want confidence in the system and that it is a fair process," he said. "The service can only work if the clients think they have a fair hearing.
"The ombudsman doesn't seem to follow the law. It is supposed to have regard to the law and customer practice in the industry. But some principles are not being applied."
Representatives from APFA met with FOS, including interim chief executive and chief ombudsman Tony Boorman, earlier this year to discuss the issue, but the outcome of the hearing has not been disclosed.
Advisers' share of complaints handled by the FOS remains at about 1%, in part reflecting their total headcount compared with major banks and insurance companies.
