Tiner calls on industry to fill the gap

The FSA has suggested the industry could fill the gap between the regulator and the Financial Ombudsman Service (FOS).

Speaking to directors at the Association of Investment Trust (AITC) conference, the FSA's insurance chief, John Tiner, said that cases of companies performing poorly that fall outside the FSA's remit and beyond the FOS' compensation limit, should be dealt with by the industry.

Tiner said: "We would urge the AITC and the investment trust industry to take steps to fill this gap, in the interests of restoring consumer confidence in this sector."

He added: "It remains possible that some cases do not find appropriate compensation because of the Ombudsman limit (£100,000). And it is not an area for the FSA to intervene directly."