FOS proposes funding overhaul for 'mass complaint' firms

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The Financial Ombudsman Service (FOS) is proposing a new funding system for those businesses which receive mass complaints.

For the largest users of its services - which it defined as the "ten or so financial groups that account for over 70% of our caseload" - it proposes a new group account arrangement which would allow it to "measure more accurately the costs to the FOS of the work generated by each of these groups". The plan is published today alongside the FOS's plan and budget for 2012/13. The "largest users" of the FOS, which have more than 2,000 cases referred per year, will have to pay a quarterly case-related fee in advance, based on an agreed assessment of likely future use of its services. Pr...

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