Context
The FOS has published a Discussion Paper which seeks feedback on it’s proposals to change the funding model for 2023/24.
Key points to note
The FOS has put forward various options for making changes to the funding structure in the future. These include:
- Changing the Compulsory Jurisdiction (CJ) levy to recover fixed overheads
- Simplifying the Voluntary Jurisdiction (VJ) levy
- Updating the case fee structure, introducing a differentiated case fee model
- Charging different case fees according to the stage the case has reached before it is resolved
- Varying case fees according to the type of product the complaint relates to
- Updating the group account fee arrangement, reducing the margin of 15% to 5% and removing the free case allowance in group fee account arrangements
- Charging fees as soon as a case is received
- Setting a time limit for claiming for refunds on overpaid case fees
- Publishing more detailed data on complaints
The FOS has also included ideas for future funding beyond 2023/24 such as:
- Charging professional representatives a fee to bring complaints
- Varied case fee according to case complexity
- Discounts for cases resolved in batches
- Introducing supplementary fees for uncooperative firms
Next actions
The Discussion Paper is open for responses until 5th August 2022.