MPs on the influential Treasury Committee have today called on the FCA to explain its role in the shock departures of the Financial Ombudsman CEO and chair over the past few days.

Dame Meg Hillier MP, chair of the Committee, has written today to FCA chair Ashley Alder to ask for more information on the circumstances which led to the sudden departure of CEO and Chief Ombudsman Abby Thomas last week.

The correspondence follows today’s Select Committee meeting where members were said by Dame Hillier to be “not satisfied...that they received the answers to their questions on the subject."

In her letter Dame Hillier says the Committee’s questioning today of FOS chair Baroness Manzoor did not provide enough clarity on the departure of FOS CEO.

In her letter to FCA chair Ashley Alder, Dame Hillier writes: “Despite extensive questioning today, the circumstances surrounding Ms Thomas' sudden departure did not appear to be fully shared with the Committee, preventing our members from forming a full understanding of the process which led to her exit and what it means for the administration and operation of the FOS.

She said that given the FCA has a statutory responsibility to appoint and remove FOS directors, including the chair, because of the “sudden departure of the CEO the Select Committee was due an explanation of what happened."

She posed a number of questions to the FCA, including:

• When was the FCA first told that Abby Thomas (FOS CEO) would be leaving the FOS?

• Did any member of the FCA board discuss the departure of Abby Thomas with her, or with any member of the FOS?

• What role, if any, did the FCA play in the departure of Abby Thomas?

• Did the FCA agree to any departure payment or severance and would the FCA need to agree to any payment?

Dame Hillier also asked if the FCA was, “satisfied itself that this departure maintains the operational effectiveness of the FOS, and that the FOS board is operating effectively?” She asked for answers by Tuesday 18 February. 

Dame Hillier has also written today to FOS chair Baroness Manzoor to ask for more information about the departure of the FOS CEO.

Both FOS chair Baroness Manzoor and FOS CEO have been tight lipped about the reasons behind their departures although Baroness Manzoor says she will only stand down in August after completing two terms. Ms Thomas quit suddenly last Thursday after two years at the FOS.

In a brief statement after her departure Ms Thomas said only that it had been “an absolutely privilege” to work at the FOS.

There is no word yet on whether a permanent replacement will be made for Ms Thomas. The FOS says it will be announcing “next steps” in due course but no timeframe has been disclosed.

The FOS says that interim arrangements will apply to cover Ms Thomas’s position, with Deputy Chief Ombudsman James Dipple-Johnstone covering the Chief Ombudsman role and chief finance and risk officer, Jenny Simmonds, covering the chief executive role. 

The decisions to stand down comes as speculation has increased that an overhaul of the regulatory and redress systems is being considered by the government which wants to cut financial services red tape to encourage growth.

There have also been reports of internal disagreements at the FOS about recently introduced charges for claims management companies and professional representatives. The FOS has not commented on the reports.