<P> However, there have been judicial reviews against the ombudsman, brought by financial services companies who have to accept the ombudsman's decisions which are binding in law . For example, in January 2011 the British Bankers Association--on behalf of a number of high - street banks--brought a judicial review against the ombudsman and the FSA on the approach to PPI complaints handling . The High Court rejected the banks' challenge and endorsed the approach taken by the ombudsman and the FSA . The difficulty in winning a judicial review is that the Financial Services and Markets Act 2000 which led to the establishment of the Financial Ombudsman Service requires the ombudsman to make decisions "by reference to what is, in the opinion of the ombudsman, fair and reasonable in all the circumstances of the case". </P> <P> In a judicial review of an ombudsman's decision brought by an independent financial adviser (IFA), the judge further clarified that the ombudsman is "free to make an award different from that which a court applying the law would make". This means that a litigant has to surmount the very high hurdle of proving that the entirety of the ombudsman's decision was so unfair that no right minded person would have made a similar decision . This is referred to as the Wednesbury unreasonableness principle which applies to any application for judicial review under made due to the irrationality of the decision . </P> <P> The board of the Financial Ombudsman Service is appointed by the Financial Conduct Authority--and the appointment of the chairman is approved by HM Treasury . The board's role includes guarding the independence of the ombudsman - from undue influence by the financial services industry and trade bodies, regulators, consumer groups and government . Board members are non-executive - they have no involvement in individual complaints . </P> <P> The ombudsman can be asked to appear before the Parliamentary Treasury Select Committee who can be contacted by the consumer's MP . </P>

Who sets the rules of the financial services ombudsman scheme