The Treasury Committee has written to the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS), seeking further information regarding the recent departure of chief ombudsman Abby Thomas.
The move follows a parliamentary evidence session held earlier today (11 February), during which Committee members expressed dissatisfaction with the responses provided about the circumstances of Thomas’ exit.
The letters, signed by Dame Meg Hillier, chair of the Treasury Committee, highlight concerns that the full details of the situation were not shared, preventing MPs from forming a clear understanding of the process leading to her departure and its potential impact on the FOS.
The Committee has outlined a series of questions directed at both the FCA and the FOS, seeking clarification on the discussions and decisions surrounding Thomas’ exit. Among the primary concerns raised are:
- The timeline of events leading up to Thomas’ departure.
- Whether senior officials at either the FCA or FOS had raised concerns about her performance.
- Whether any severance or settlement payment was agreed and, if so, the details of such an agreement.
- The extent of FCA involvement in the decision and whether the regulator played any role in her departure.
- Whether the operational effectiveness of the FOS has been maintained following the departure.
The letters reference the FCA’s statutory responsibility, under the Financial Services and Markets Act 2000, to ensure that the FOS remains capable of exercising its functions.
The FCA plays a role in appointing and removing FOS board members, approving the organisation’s annual budget and overseeing its general operation.
The Committee is now pressing the regulator to explain how it has met these responsibilities in light of Thomas’ sudden exit.
In a letter addressed to Ashley Alder, chair of the FCA, Dame Meg Hillier requests information on when the FCA was first informed of Thomas’ departure and whether any FCA board members discussed the matter with her or FOS representatives.
The Committee also seeks confirmation on whether the FCA had any involvement in approving a severance package and whether it believes the FOS board remains fully functional.
The letter gives the FCA until the close of business on Tuesday 18 February to provide answers.
A separate letter was sent to Baroness Manzoor, chair of the FOS, requesting more detailed information about Thomas’ departure from within the organisation.
The Committee has asked for details on any severance payment, including whether it was for loss of office, redundancy or payment in lieu of notice.
MPs also seek confirmation on whether there are any legal or contractual restrictions preventing Thomas from providing her perspective to the Committee.
Further questions focus on whether concerns were raised by the FOS board about Thomas’ performance or the executive team, and whether any recent policy or administrative decisions have caused internal disagreements.
Dame Meg Hillier has made it clear that the Committee intends to exercise its oversight powers fully.
Under House of Commons Standing Order No 152, the Treasury Committee is tasked with examining the “expenditure, administration and policy” of public bodies linked to HM Treasury, including the FOS.
The Standing Order empowers the Committee to request documents and summon witnesses, reinforcing its authority to seek answers on this issue.
It was confirmed yesterday (10 February) that Baroness Manzoor will step down as chair of the FOS when her current tenure ends on 1 August 2025.
This announcement came just days after the resignation of Abby Thomas.
