HM Treasury News Release 
165/97                                         18 December 1997
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        HELEN LIDDELL WELCOMES PROPOSALS FOR COMPLAINTS
                HANDLING FOR FINANCIAL SERVICES

Proposals for a single compensation scheme and a compulsory
Financial Services Ombudsman were welcomed today by the
Economic Secretary, Helen Liddell.

The proposals are contained in two consultation documents
issued today by the Financial Services Authority (FSA).

Welcoming publication, Mrs Liddell said:

     "The existing patchwork quilt of complaints-resolution
     schemes, some offering arbitration, some constituted as
     Ombudsmen, some compulsory and some voluntary, confuse
     and frustrate complainants.

     "We all need arrangements that are comprehensive,
     transparent and easily accessible to consumers.

     "Firms should be in no doubt about their obligation to
     deal with complaints fairly and quickly. The public need
     to be assured that if they and the firm are unable to
     resolve a complaint, they will have access to a single,
     compulsory and highly visible Ombudsman scheme - the
     judgements of which will bind the firm."

The FSA document on complaints-handling sets out the
Government's decision that there should be a single compulsory
Financial Services Ombudsman. The scheme will cover all firms
authorised by the FSA.

The document on compensation sets out how the FSA proposes to
approach implementation of the Government's decision to have a
single compensation scheme.







NOTES TO EDITORS

1.   Publication of the consultation documents was announced
in response to a written Parliamentary Question from Jackie
Lawrence MP [Preseli, Pembrokeshire]. The text of the question
and answer is attached.

2.   Information on the consultation documents on compensation
and complaints handling can be obtained from the Financial
Services Authority Press Office on 0171 638 1240.

3.   If you have access to the Internet you can find this news
release and other Treasury material at http://www.hm-
treasury.gov.uk.