“For 2024/25, to cover respective overhead and marginal costs, surplus reserves will subsidise a total of £27.2mn shortfall in funding (£20.6mn CJ levy, £6.6mn case fees).”
Changing power
In the next financial year, the Fos expects to receive 181,300 new complaints about financial providers.
It has also set itself a new target of resolving 90 per cent of cases within five months.
Meanwhile, the consultation will also seek views on the possible exercise of new powers granted in the Financial Services and Markets Act, allowing the Fos to charge claims management companies and other relevant professional representatives.
In a statutory instrument by HM Treasury published yesterday (December 5), it said it will give the Fos powers to set the scope of who it can charge fees to.
The Fos will then be responsible for making decisions as to who is charged, within the scope of those rules.
As part of this, the Fos is being given the power to charge case fees to CMCs from next year.
Currently the Fos can only charge case fees to respondents to a case, meaning the firms which are subject to a complaint.
The Fos expects to start charging them case fees by the end of September 2024.
James Dipple-Johnstone, deputy chief ombudsman at the Fos, said: “We are committed to improving our service so it is as easy to use and accessible as possible, while ensuring it remains free for all consumers and that those with upheld complaints can keep all of any award we make.
“Professional representatives play an important role in resolving financial disputes.
“However, 20 per cent of cases are brought by representatives, some of whom benefit commercially at scale, yet more than half of such cases are not upheld. It is therefore timely that we explore whether our fee structure is right for the current climate and best reflects the costs we incur in helping resolve disputes for customers.”
sonia.rach@ft.com
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