The Financial Ombudsman Service (FOS) has published its Plans and Budget Consultation 2022-23. The Consultation sets out the plans for the coming financial year, including the volumes of complaints expected and the proposed budget and funding arrangements. It also gives an update on the progress this financial year.
The Consultation is split into sections:
- About Us
- About this consultation
- Overview: Our 2022/23 plans and budget (a brief snapshot is included in the graphics below)
- Consultation questions
- How to respond
- The next steps
- Chief Executive and Chief Ombudsman’s introduction
- Our 2022/23 plans
- Our 2022/23 budget
Firms may particularly be interested in the following items from the Consultation:
- Consulting on a CJ levy of £106m – an increase of £10m on the existing levy. This would increase the levy to the level previously consulted on in both the 2020/21 and 2021/22 budget cycle, which were not implemented due to the wider financial risks for firms as a result of the pandemic.
- Decreasing the number of free cases from 25 to 3, and reducing the number of free cases for group firms from 50 to 15. Around 7 in 10 firms will pay no case fees (9 in 10 today). An additional £11m of income is anticipated associated with that change, with around 850 more firms expected to pay a case fee in comparison to 2020/21.
- The individual case fee will remain at £750
The full consultation can be viewed at https://www.financial-ombudsman.org.uk/files/320493/plans-and-budget-consultation-2022-23.pdf
This consultation is open until 31st January 2022. Firms can respond online, or can e-mail responses to consultations@financial-ombudsman.org.uk. Final plans and budget will be published by 31 March 2022.
If you think you need any help in reviewing your complaints handling processes to minimise the chances of a complaint being referred to FOS, please contact the Compliance helpline on 01925 767888 or by e-mail helpline@ukgigroup.com.