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frequently-asked questions

how is the Financial Ombudsman Service funded?

We're funded by a combination of levies and case fees paid by the businesses we cover. As we're unbiased, our funding isn't dependent on the outcome of the complaints we look into.

The financial services regulator, the Financial Conduct Authority, collects the levy each year. Businesses pay on a sliding scale - from around £100 for the smallest firms, to over £300,000 for the largest banks and insurers.

In January each year we consult publicly on our proposed budget for the financial year ahead - including the amount we plan to raise through the levy, and the proposed level of our case fees.

Under the current arrangements, businesses that have 25 cases or fewer referred to us in a year don't pay any case fees.

For the 26th complaint and each one after that, we charge a fee of £550 when the complaints is resolved.

From April 2012 to April 2014, we also charged a supplementary case fee of £350 for the 26th and each subsequent complaint about mis-sold PPI.

In April 2013, we introduced a group-charging account for the largest financial services groups. Around three quarters of our workload is now paid for on this more financially stable basis - by the businesses whose customers use us most.

For more details see our factsheet:

a quick guide to ... funding and case fees