Published by: Financial Ombudsman Service
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Key Take Aways
The Financial Ombudsman Service is evolving its funding model to better reflect case workload, aligning with principles of fairness, simplicity, and sustainability.
The consultation proposes further differentiation of case fees based on case stage and outcome, moving beyond the existing flat fee structure introduced with professional representatives.
Differentiation by case stage aims to incentivise early resolution, with lower fees at initial stages and higher fees for cases requiring full investigation.
Differentiation by case outcome would charge higher fees for upheld complaints, consistent with the ‘polluter pays’ principle, but raises potential bias concerns.
The organisation plans to modernise billing processes, including moving to quarterly in advance billing for 95% of firms, to support case fee differentiation.
A move from free cases to a fixed monetary allowance per organisation each yea...
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