FOS to change funding model levy, trial new group fee arrangement

Compulsory jurisdiction and voluntary jurisdiction set for overhaul

Hope William-Smith
clock • 2 min read

The Financial Ombudsman Service (FOS) is poised to radically overhaul its funding model for 2023/24 marking the biggest change since the model was established in 2000.

In response to feedback on its summer funding consultation today (16 November) the ombudsman said the "dramatic changes" in financial services and subsequent developments in customer expectations and behaviours necessitated change. The FOS confirmed it will alter its compulsory jurisdiction (CJ) levy and voluntary jurisdiction (VJ) levy to recover fixed costs. It is currently funded through a combination of the CJ levy - a general levy on firms - and the VJ levy on participants in a 44:56 levy:case fee split. The ombudsman also confirmed it will trial changes to the group fee account ...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

CII calls for new approach to vulnerability data sharing

CII calls for new approach to vulnerability data sharing

Many firms displaying “excessive caution”

Jaskeet Briah
clock 25 June 2025 • 2 min read
IPT receipts hit £1.48bn in May 2025

IPT receipts hit £1.48bn in May 2025

Up £50m year-on-year

Jaskeet Briah
clock 20 June 2025 • 2 min read
Sarah Pritchard named FCA's deputy CEO

Sarah Pritchard named FCA's deputy CEO

Promoted to the newly created role

Jenna Brown
clock 11 June 2025 • 1 min read