GISC Chairman Chris Woodburn has said that brokers will not be forced to join the new financial ombudsman scheme under the same fee structure as currently exists for the Insurance Ombudsman.

"Vexatious complaints from consumers are a matter of great concern to the GISC board," he said. "We don't want to recommend membership of the Financial Services Ombudsman to our members if there's a £500 complaint fee."

Meanwhile, Hampshire-based broker IGIS has given the idea of a £500 fee its "strong support".

IGIS managing director Andrew Blowers said:"The industry has absolutely no regulation at present and it must now be seen to be cleaning up its act".

Brokers are angry that the £500 charge, as calculated by the AiiB, would apply whether or not the complaint was upheld.

But Blowers argued that brokers acting responsibly "would not be inundated with 'have-a-go clients' pursuing frivolous claims through the Ombudsman".

He added that IGIS had not experienced any such claims in the 14 months since it signed up to the existing Ombudsman scheme.