Financial Ombudsman Rebuked by MPs Over Handling of Ex-Chief's Dismissal

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Scrutiny and Secrecy: A Conflict in the Financial Sector

The departing chairwoman of Britain's financial ombudsman, Baroness Manzoor, has been accused by MPs of a "disrespectful" refusal to face scrutiny over the dismissal of its former chief executive. In a report published on Monday, the Commons Treasury Committee criticised her for declining to answer questions about the ousting of Abby Thomas from her role in February.


  • The committee's report highlighted the dispute between the FOS Board and Ms Thomas regarding strategy and operations.
  • Baroness Manzoor refused to provide details of any severance deal or financial package negotiated with Ms Thomas.
  • The Treasury Committee chairwoman, Dame Meg Hillier, expressed disappointment at the senior leadership's handling of the situation.

Lack of Transparency

The committee's report noted that despite the FOS complying with an order to submit details of any severance deal, it refused to publish them. This decision was made due to concerns about balancing transparency against fairness to individuals. However, this stance has been criticised by MPs as unnecessary and disrespectful.

Implications for Accountability

Dame Meg Hillier's statement highlights the importance of accountability in the financial sector. She expressed hope that the outcome would send a clear message to organisations considering similar actions in the future: that Members of the House of Commons will have answers to their questions on behalf of the British public.

Response from Baroness Manzoor

In response to the criticism, Baroness Manzoor maintained her commitment to providing open and transparent evidence but acknowledged rare instances where this may be difficult, particularly when it relates to employment matters.