A CALL is being made for the introduction of a financial services ombudsman.

Deputy Marc Laine said that only court proceedings could force a provider to settle even a simple dispute, meaning power rested firmly with institutions and the wealthy.

‘People who might not have much money have to pay advocates’ fees to take on institutions with bottomless pockets and run the risk that costs could be awarded against them,’ he said.

Commerce and Employment member Deputy Laine (pictured) has raised the matter with his board and he hopes it will eventually go before the States.

He said he had been asked to help several islanders who had been mis-sold investments and whose capital had been exposed to unnecessary risk. In some cases, high street banks had failed to follow their own procedures.

• The GFSC favours an ombudsman but said establishing the post could not be a priority at present. Director-general Peter Neville said a formal complaints-handling service was an essential element of consumer protection but to be effective it needed the power and capability to resolve issues, which the GFSC did not.