FOS cuts budget 13% and freezes levy at £23m

Its proposed Plan and budget for the next financial year (2015/2016), released on 6 January, showed the organisation will reduce its operating budget from £253.7m to £220.7m for 2015-2016 as it anticipates handling fewer cases which generate a £550 case fee. It said this represents a 13% cost saving to the financial services sector, which funds the service via levies and case fees. The overall compulsory levy on the industry will remain at £23.3m in 2015-2016. As advisory firms do not tend to attract more than 25 cases in a six month period - the point from which a case fee would kick...