The Association of Independent Financial Advisers (AIFA) wants a comprehensive review of the Financial Ombudsman Service (FOS).

The trade body claims the Ombudsman is creating a second tier to the regulatory structure.

AIFA has called for a review of FOS to look at the introduction of a long stop to give IFAs the same legal protection as other UK professions and the introduction of a ‘no loss, no fee’ system so IFAs are not charged if they are cleared of any wrongdoing by FOS.

It also wants all political parties to look at complaint management firms in the Ombudsman’s annual levy and FOS being subject to the rule of law and bound by legal precedent.

Chris Cummings , director general of AIFA, said: “Now is the time to review the work of the Ombudsman. It should be a mediator between disputing parties rather than the ‘judge and jury’ of firms’ activity.