Oversight Committee

The Oversight Committee works with the Financial Ombudsman Service and the Financial Services Compensation Scheme to ensure they can carry out their roles. 

Under the Financial Services and Markets Act 2000 (FSMA), the FCA must take 'such steps as are necessary’ to ensure that the Financial Ombudsman Service (the Financial Ombudsman) and the Financial Services Compensation Scheme (FSCS) can carry out their roles.

For the FSCS, the FCA does this jointly with the Prudential Regulation Authority (PRA), which has its own governance processes. The Oversight Committee provides support and advice to the FCA Board on these matters.

    Financial Ombudsman Service

    The Financial Ombudsman's role under FSMA is to ‘independently resolve certain disputes quickly and with minimum formality on the basis of what it believes is fair and reasonable in all the circumstances of the case’.

    For the Financial Ombudsman, the Oversight Committee:

    • reviews and challenges the Financial Ombudsman’s annual budget, and recommends to the Board whether it should approve the annual budget
    • advises the Board on the Financial Ombudsman’s qualification as an Alternative Dispute Resolution (ADR) Entity under the Alternative Dispute Resolution Regulations 2015 
    • advises the Board on appointing and removing the directors (including the chairman) of the Financial Ombudsman (in the case of the chairman, this is done with the approval of the Treasury)
    • advises the Board on ensuring the directors are appointed on terms that secure their independence from the FCA in the operation of the Financial Ombudsman Scheme
    • provides any other advice and support the Board requires to satisfy the FCA’s legal obligations, and exercise its powers, in relation to the Financial Ombudsman

    The Financial Ombudsman is operationally independent of the FCA. The FCA can't get involved in decisions the Financial Ombudsman makes on individual complaints.

    Financial Services Compensation Scheme

    The FSCS’s role under FSMA is to ‘protect eligible claimants that incur financial losses when firms authorised under FSMA are unable, or likely to be unable, to pay claims against them relating to certain regulated activities’.

    For the FSCS, the Oversight Committee:

    • reviews and challenges the FSCS’s management expenses budget, and recommends to the Board the amount at which the management expenses levy limit of the FSCS should be fixed
    • advises the Board on appointing and removing the directors (including the chairman) of the FSCS (in the case of the chairman, this is done with the approval of the Treasury)
    • advises the Board on ensuring the directors are appointed on terms that secure their independence from the FCA in the operation of the FSCS
    • provides any other advice and support the Board requires to satisfy the FCA’s legal obligations, and exercise its powers, in relation to the FSCS

    The FSCS is operationally independent of the FCA. The FCA can't get involved in the decisions the FSCS makes on individual claims.

    Meetings

    The Oversight Committee meets at least three times a year with the executive and non-executive directors of the Financial Ombudsman and the FSCS, including the chairs.

    Membership

    • Jeannette Lichner (Chair)
    • Richard Lloyd OBE 
    • Sheldon Mills

    Page updates

    20/07/2022: Editorial amendment Updates to page features for website refresh.
    04/07/2022: Information changed Update to committee membership.