View more on these topics

FOS ups budget by £30m

FOS-Exchange-Tower-building-2015

Operating costs at the Financial Ombudsman Service are set to jump £30m next year.

The complaints adjudicator has proposed a budget for the 2017/18 financial year of £295m, up from £265m this year.

The FOS forecasts it will spend £9m less than its £265m budget for 2016/17, however.

The budget increase comes primarily from contractor staff costs, which were budgeted at £40m for 2016/17, rising to £70m in 2017/18.

Provision for “contingencies” is being increased from £7.6m to £10m, while overall staff costs are ticking down from a budgeted £167.9m to £165.5m.

Chief ombudsman Caroline Wayman, chief ombudsman says:  “Like last year, we’re planning for the next financial cycle at a time of ongoing uncertainty in the area with the most significant bearing on our work. As ever, we remain focused on giving quick and fair answers to individual problems, while ensuring we’re in a position to respond effectively to future demand for our help.”

The FOS will look to freeze the case fee for businesses – which only applies after their 25th case – at £550. It is hoping to generate an extra £20 in income through its group fees account which covers the eight largest businesses responsible for the most complaints.

plan-and-budget-2017-18-pdf

The FOS is expecting a similar level of investment and pensions complaints to last year with 13,000 due to be handled by the service.

The consultation on next year’s business plan reads: “In response to our consultation last year, some of our stakeholders said they thought we might see an increase in complaints about pensions. We explained in ombudsman news in June 2016 that, although around a quarter of a million people had used their “pension freedoms” by that point, we’d received very few complaints. This position hasn’t changed. And it’s now been confirmed that the planned secondary market for annuities – which some stakeholders thought might have resulted in complaints to us – won’t be going ahead.”

Payment protection insurance is again set to dominate the FOS workload, with 250,000 new complaints anticipated.

Recommended

9

Is the FOS finally listening to advisers’ concerns?

My last column looked at the work we have been undertaking with the FCA to provide guidance on suitability reports. The aim of this guidance is to give advisers greater confidence on how to structure information in a way that encourages consumers to engage with the report document, while protecting themselves in the event of […]

2

FOS Sipp claims still on increase, latest data reveals

The Financial Ombudsman Service upheld half of Sipp-related cases as number ticked up again between July and September, new data shows. The FOS published its second quarter complaints data today which shows it received 435 Sipp enquiries between July and September which was a slight increase on the 427 enquiries it received between April and […]

1,000 fewer advice firms receive FOS complaints

The number of advice firms that have received complaints to the Financial Ombudsman Service has fallen by more than a thousand in the last three years. A Freedom of Information Act request from Money Marketing shows that in the 2013/14 financial year, 3,573 advice firms received complaints at the FOS. This fell to 2,889 in […]

Creating opportunity out of change

By Denise Wond, marketing manager The buy-to-let market has recently been the subject of a raft of tax changes, all of which make it a less profitable and less appealing proposition for investors. In response, we’ve seen a dip in demand for BTL mortgages and that’s bad news for many advisers who will now be looking […]

Trusts: Easier than you think?

Protection providers often extol the benefits of placing plans in trust. The advantages for clients are widely recognised and numerous – inheritance tax mitigation, avoiding probate delay, controlling claim proceeds, and so the long, familiar list continues. Yet, dismissed as unnecessary form-filling, or simply viewed as irrelevant in the context of a mortgage sale, less […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. I have never sold a PPI policy in my life yet most of my expenditure is to repay bank losses through this – how is this fair and ignoring product levies just?

    • We’re not repaying bank losses, we’re paying (towards) the costs of people at the FOS investigating and adjudicating on complaints which the banks have rejected.

  2. Looking at the trend of increasing complaints you would be forgiven for thinking that regulation is failing…

    Which made me wonder whether complaints feature in the FCA’s performance metrics. If so, do they look to regulation to increase them or decrease them? Or is it something they have no control over?

  3. Panic over people, ALL PPI claims are going to be timebarred with immediate affect (and possible all claims for ANY policy sold after 3 years).

    Dont believe me? well we just had an OMBUDSMAN decision in this morning (not an adjudicator) saying that the complaint was out of time due to the 3 year rule as the client had received a Welcome Letter after they were sold the policy.

    Yes that’s right, the FOS have timebarred a complaint because the client received a policy document! Why isn’t everyone timebarring every complaint after 3 years as they should have been aware they had reason to complaint after receiving the policy document?

    • This sounds like a longstop yet, for pretty well anything else, people can come after us indefinitely, no matter how many years ago the original advice was given.

  4. “The budget increase comes primarily from contractor staff costs” who on earth are these and why are they allowed contractors?

Leave a comment