Does the FOS’ new funding proposal bring us closer to creating a fair FOS?

Industry News | 28/10/19

On 2 July 2019, the Financial Ombudsman Service (FOS) opened a new consultation. It would like to see the proportion of the income it receives from case fees re-balanced in favour of a higher levy. Currently, the ratio is 85% case fees and 15% levy. FOS would like to shift this to 50/50. The consultation period closed on 13 August 2019. The consultation for plans and budget opens in December 2019, with implementation proposed in April 2020.

What set the hare running initially on the changes was the Channel 4 Dispatches documentary on the FOS aired in March 2018. The frustration about the speed at which the FOS resolves disputes and the quality of its casework perhaps came as no surprise, but Dispatches shone a light on a serious (and alarming) lack of specialist knowledge and training from adjudicators. Staff admitted to feeling under prepared for complex cases and having to Google products they were unfamiliar with.

Source: Mills Reeve