Senator Alan Breckon has been trying for years to have a financial ombudsman appointed with powers over areas such as mortgages and banking

THE States has agreed to set up a financial ombudsman giving Islanders the ability to challenge unfair and incorrect financial advice.

The independent watchdog will also give consumers the chance to complain about mis-sold mortgages, unreasonable bank charges and even pensions.

Work will start on the scheme next year after the Council of Minsters were defeated in the States yesterday.

Senator Alan Breckon, who has continually tried to have a financial ombudsman appointed in Jersey, proposed to replace work on a Plant Varieties Law – which needs to be in place before the Island can open up to intellectual property business – with work on the scheme.

The States voted by 32 votes to 13 to approve the Senator’s amendment as the Business Plan 2010 debate finally came to a close after five days of debate, and defeats for the Council of Ministers over the Millennium Town Park, environmental taxes, and the Bellozanne treatment works.