A new body to deal with complaints about financial institutions has been proposed by Deputy Alan Breckon.

But Deputy Gerald Voisin, President of Economic Development, says it would cost £500,000 a year to run.

He says that would have to come from either the States or the industry, neither of which have the money spare.

People in Jersey should receive better protection when involved with disputes with banks and other financial companies, a politician has said.

Deputy Alan Breckon said the island needed a financial services ombudsman.

Deputy Breckon said businesses were protected from unfair practices by the Financial Services Commission (FSC) but there was nothing to help individuals.

The FSC said it expected companies to have satisfactory systems to enable them to deal with customer complaints.

Deputy Breckon said the island was a long way behind other places, including the UK and the Isle of Man for not having such a service.

He said he took proposals for an ombudsman to the States last year and that it had been a shame that it still had not been debated.