Good guys pay: PIMFA criticises FOS funding model proposal

The FOS is consulting on a new funding model that would see those who have more complaints sent to the ombudsman pay less to the running of it.  Presently, 85% of FOS costs are paid by firms for each complaint taken to the ombudsman, while 15% of funding comes from an industry-wide levy. However, it has proposed funding costs should be split 50:50 between case fees and the levy. The Personal Investment Management & Financial Advice Association (PIMFA) said splitting the funding in half would mean firms that generate fewer complaints will greatly subsidise firms that account for the ma...