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Financial Ombudsman Ditches Test After Lawmaker Criticism

Law360, London (November 20, 2018, 3:34 PM GMT) -- The Financial Ombudsman Service has ditched a test it wanted to use as it reviews its handling of old cases after lawmakers said the test was too stringent, correspondence published by a parliamentary website revealed Tuesday.

The FOS had originally intended to use the so-called Wednesbury test, which measures whether a decision is so irrational that no reasonable person would have reached it, as it reviews thousands of its rulings. But the Treasury Committee criticized the test as too tough and said using it would do little to restore public trust in the service.

Caroline Wayman, chief executive of the ombudsman service, said...

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