Published by: Financial Ombudsman Service
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Key Take Aways
The Financial Ombudsman Service is proactively evolving its funding model to better reflect case complexity, demand forecasting, and industry workload distribution, with a focus on fairness and simplicity.
A significant shift is proposed towards differentiation of case fees based on either case stage or case outcome, aiming to align costs with effort and minimise cross-subsidisation.
The organisation has already introduced charges for professional representatives, with proposals to extend differentiated fees to all cases based on case outcome, potentially incentivising early resolution and fair behaviour.
A move from flat case fees to a system incorporating quarterly billing in advance is on the table, aimed at reducing administrative burdens, streamlining cashflow, and supporting future fee differentiation.
The consultation highlights the importance of modelling risks, including potential impact...
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