Liam Coleman Appointed as Chair of the Financial Ombudsman Service

Liam Coleman has been appointed as the permanent chair of the Financial Ombudsman Service (FOS), following a year-long tenure as interim chair. For fintech leaders and traditional financial institutions, this appointment signals a period of regulatory continuity as the Financial Conduct Authority (FCA) moves to overhaul the UK’s consumer redress framework to ensure greater consistency across the sector.

What was announced

The Board of the Financial Conduct Authority has confirmed Liam Coleman as the permanent chair of the Financial Ombudsman Service, a move that has received formal approval from the Treasury. Coleman is scheduled to begin his three-year term on 10 October 2026. This transition from his interim role, which he has held for the past year, comes at a time when the FOS is under pressure to modernize its dispute resolution processes.

The FOS is a statutory body established to resolve disputes between financial businesses and their customers. Its remit is broad, covering sectors including banking, insurance, mortgages, loans, pensions, and investments. Since April 2019, the organization’s reach has expanded significantly to include complaints from larger small and medium-sized enterprises (SMEs) and claims management companies. Under the Financial Services and Markets Act 2000 (FSMA), the FCA is responsible for appointing the FOS chair, while the FOS Board itself is tasked with ensuring the service remains independent, effective, and adequately resourced.

A central component of this announcement is the ongoing collaboration between the FCA, the Financial Ombudsman Service, and the UK government. These entities are currently working to transform the national redress system. The stated goal of this transformation is to create a service that provides consistent and fair outcomes for both firms and consumers, addressing long-standing industry concerns regarding the predictability of ombudsman decisions.

"I am honoured to take on the permanent role as chair of the Financial Ombudsman Service. It plays a vital role in upholding fairness and trust in the financial system. I am pleased to be able to continue to work with the rest of the Board, the executive team, and our wider stakeholders."

Liam Coleman at the Financial Ombudsman Service.

The companies involved

The Financial Ombudsman Service is the primary venue for out-of-court dispute resolution in the UK financial sector. It operates independently of the regulator, though its governance is tied to the Financial Conduct Authority. The FCA, the UK’s conduct regulator for financial markets and firms, holds the power of appointment over the FOS chair to ensure alignment with broader regulatory objectives. The FOS has been a frequent subject of industry scrutiny, particularly as its remit has grown to encompass more complex SME lending and claims management disputes.

Liam Coleman brings a diverse background to the role, spanning both the public and private sectors. In addition to his leadership at the FOS, he serves as the group chair of London & Quadrant Housing Trust (L&Q) and as chair at Great Western Hospitals NHS Foundation Trust. His career history includes senior positions at several major UK financial institutions, including Nationwide Building Society, the Royal Bank of Scotland, and the Cooperative Bank. He also has direct experience within the regulatory sphere, having previously held roles at the FCA itself.

What FF News has reported before

The FCA has been exceptionally active in recent months, implementing a series of reforms aimed at market stability and consumer protection. FF News recently covered how the FCA Mandates 90-Day Notice Periods to Stabilize Long-Term Investment Funds, a move designed to protect investors from liquidity mismatches. This followed a significant enforcement action where the FCA Shuts Down 24 CFD Firms in Major Crackdown on Misleading UK Authorisation.

Furthermore, the regulator has turned its attention to the SME sector, which falls under the FOS remit. We reported on the FCA Unveils Strategic Roadmap to Boost SME Access to Finance via Open Finance and Regulatory Reform. The intersection of fraud and consumer redress also remains a priority; FF News highlighted data showing that TransUnion FOI Reveals 1 in 5 UK Scams Target Previous Victims via Recovery Room Fraud, a trend that frequently leads to complex complaints handled by the Ombudsman.

What this means

The decision to move Coleman from an interim to a permanent footing suggests that the FCA values stability over radical change at the top of the Ombudsman. The industry has long complained about the "Ombudsman lottery," where decisions can feel disconnected from the FCA’s own handbook. By emphasizing a "predictable" and "consistent" redress system, the FCA and FOS are acknowledging these frustrations. For fintechs, particularly those in the scaling SME lending space, the pressure is now on to align internal complaints handling with this evolving "consistent" standard. The real test for Coleman will be whether the FOS can reduce its backlog while maintaining the independence required to keep consumer trust in a volatile economic environment.