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 ...

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