Financial Ombudsman Service chief Shane Tregillis is "hopeful" that an industry-funded scheme of last resort compensation will be introduced as part of the government-led overhaul of dispute resolution in the financial services sector.In an interview with Banking Day last week, Tregillis said the four major banks recognised the need for such a scheme."We take comfort from the fact that the banks have indicated their support for a limited compensation scheme of last resort that covers financial advice," he said."With the move to the new one stop shop (for dispute resolution) it's important this issue be looked at to ensure the new system is fit for purpose - I remain hopeful and optimistic."At least 188 consumers and small businesses are yet to receive compensation from financial services providers despite winning decisions from the FOS and the Credit and Investments Ombudsman in their favour.Most of these cases relate to collapsed financial advice and investment companies such as former Gold Coast-based finance outfit MFS, which, collectively, are unable to stump up more than A$13 million owing to clients relying on decisions made by the ombudsman schemes.While the Ramsay committee last month stated that the nominal value of unpaid compensation was $13 million, the real value has actually ballooned to more than $16 million when penalty interest is accounted for.Introduction of a last resort scheme would likely be funded by a discrete levy imposed on industry members of the ombudsman schemes based on market size.The Big Four banks have repeatedly broadcast concerns that such a funding model would result in them underwriting the compensation bills of failed rivals.