Biba is to maintain a "watching brief" over the way the Financial Ombudsman Service resolves disputes involving brokers, according to Biba regulation and compliance manager Steve White.

White said brokers had "no experience" of how the ombudsman operates, as it had only gained jurisdiction to handle customer complaints on 14 January 2005.

He said that as disputes were handled, Biba would be "keeping an eye on the ombudsman and talking to our members about their experiences".

"This will enable us to make a meaningful contribution to the debate," he added.

White's comments came as the FSA published its response to the consultation on the procedures for handling complaints to the FOS.

The paper set out arrangements to clarify the different roles and responsibilities of the FSA and the ombudsman service when "wider implications" issues - those that have a wide impact on the insurance market - arise.

The FSA also said it would not be recommending that the government introduce an external appeals procedure.