FOS proposes £5m levy hike on firms

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The Financial Ombudsman Service (FOS) is set to ask the Financial Services Authority (FSA) to increase the amount it levies firms by £5.3m to £23m.

The overall amount of the ‘compulsory jurisdiction levy' has been set at £17.7m for the past four years.

However, the FOS said to maintain the balance between the case fee - which will rise to £550 from April but only after 25 ‘free' cases - and the levy, and to take account of inflationary pressures, the levy needs to rise this year.

It has also set an income budget of £280.1m, up from £147.2m forecast for 2012/13, mainly due to increased workload linked to Payment Protection Insurance (PPI) claims.

In order to deal with the PPI case load, the FOS is planning to recruit 1,000 additional case handlers dealing specifically in this area.

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