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

FCA review highlights role of AI in tackling protection gap

FCA review highlights role of AI in tackling protection gap

Warning AI could make markets more opaque

Jaskeet Briah
clock 06 July 2026 • 4 min read
FCA seeks to ease Consumer Duty wholesale and non-UK burden

FCA seeks to ease Consumer Duty wholesale and non-UK burden

Clarity on firms' responsibilities when working together

Sophia Panayi
clock 29 June 2026 • 2 min read
FCA launches Simplifying Insurance Rules consultation

FCA launches Simplifying Insurance Rules consultation

Reduction in disclosures

Cameron Roberts
clock 29 June 2026 • 4 min read