View more on these topics

Advisers back FOS case fee reform

Advisers are concerned about the impact of the 90 per cent increase in the Financial Ombudsman Service’s total budget but are broadly supportive of plans to reform case fees.

In its plan and budget for 2013/14, published last week, the FOS outlined plans to increase its total budget from £147.2m forecast for 2012/13 to £280.1m for 2013/14.

The budget includes levies on financial services firms, those who hold consumer credit licences and the amount raised from case fees. Individual firm levies will depend on which FSA fee block they are in.

It is hiking the total amount it levies firms from £17.7m to £23m.

Following a consultation last year, the FOS confirmed plans to increase the number of free cases a firm is allowed in a year from three to 25. It also plans to increase its standard case fee from £500 to £550.

The FOS is planning to introduce a new “group account” structure for case fees for the four biggest banking groups that together account for 60 per cent of its caseload. Group account fees would be set in advance, with a quarterly fee based on the proportion of complaints from each group. Fees would then be adjusted at the end of the year if actual complaint figures were markedly different.

Payment protection insurance complaints will continue to incur a supplementary £350 case fee.

Highclere Financial Services partner Alan Lakey says: “Case fees should be geared around the firms that cause the FOS the most work. But the increase in the budget is significant and the sad truth of it is bodies like the FOS are not as careful with spending other peoples’ money as they would be if it was their own.”

Sovereign IFA director Mark Hibbitt says: “I am worried about how much our fees will have to increase to pay for the higher FOS budget.”


Henderson hires Mercer’s O’Connor as director of multi-asset

Henderson has appointed Mercer Investment Consulting partner Paul O’Connor as a director of its multi-asset team. O’Connor, who joins the team later this month, will work across the £5.4bn multi-asset range, including contributions to asset allocation and product development. He fills the void left by former director of multi-asset Tony Lanning, who left the firm […]


Aegon ditches 50% contribution refund for auto-enrolment platform

Aegon has ditched its offer to reimburse 50 per cent of an employers first three months contributions on its automatic enrolment platform. The provider says the decision to cancel the offer for the Aegon Retirement Choices platform was made following an “exceptional” market response to the proposition. An Aegon UK spokesman says: “Market reaction to […]

Providers sign up to new pension charges disclosure standards

Fourteen of the UK’s biggest pension providers have signed up to a series of charges disclosure standards set out by the Association of British Insurers. Under the terms of the agreement, published by the trade body last week, insurers will be required to: disclose total charges to employees at the outset, to a standard definition, […]


Pensions regulator warns against consultancy charges for scheme set-up costs

The Pensions Regulator is warning advisers against imposing consultancy charges on members for the set-up costs of workplace pension schemes. Speaking to a Department for Work and Pensions select committee yesterday, TPR chief executive Bill Galvin said there must be clear benefits if set-up costs are rolled up into the scheme as fees. He said: […]

Lifetime ISAs – International Evidence

By Fiona Tait, Pensions Specialist Since the announcement in March, the Lifetime ISA (LISA) has attracted controversy. Heralded as a saviour for the self-employed and the young wanting to get on the housing ladder, the new LISA risks adding confusion for savers trying to fully understand the benefits of new workplace pension savings through auto-enrolment. To […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Whilst I welcome what appears to be a move to apportion a higher proportion of the FOS’s total levy bill to the sectors responsible for the highest proportion of referred complaints, I still think that:-

    1. case fees in respect of complaints found to be frivolous, vexatious or downright fraudulent should be refundable and

    2. members of networks should be treated as individual firms as far as the allowance of a number of free cases is concerned. At present, as a member of a network, the free case allowance is of no value to us whatsoever (not that we ever receive any complaints, touch wood, but it’s the principle that’s important).

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm