The Financial Ombudsman Service plans and budget for next financial year (2017/18) - consultation
Last updated: 17 Jan 2017
- Consulting body:
- Financial Ombudsman Service
- Period of consultation:
- Runs from 14 December 2016 to 31 January 2017
- CML action:
- Response submitted
The Financial Ombudsman Service (FOS) has published its proposed plans and budget for the next financial year (2017/2018) for public consultation – together with an update on complaints and casework for the current financial year.
They expect to handle a record number of PPI complaints and a consistent level of general casework.
The proposals to manage and fund this workload include:
- freezing the case fee paid by business at £550 for the fifth year running - businesses pay a case fee only after their 25th case, which means 99% of businesses will continue to pay no case fee at all;
- freezing the compulsory jurisdiction levy at £24.5m and funding three-quarters of its workload through the group-account charging arrangement that covers the eight largest businesses responsible for the most complaints; and
- a proposed total operating income of £276.6m.
The UK financial services industry is undergoing a prolonged period of uncertainty and change. We, therefore, welcome the opportunity to respond the Financial Ombudsman Service’s (FOS) consultation paper on its Plans and Budget for 2017/18.
We note that mortgage products have a particularly long life; with the majority distributed through an intermediary channel.
Selling mortgage loans is common in the mortgage industry and lenders may use mortgage servicers (also known as third party administrators) to collect loan payments. This can make investigations into complaints complex and time consuming.
Read the full CML response to this consultation below.