Financial Ombudsman Service publishes a Discussion Paper on its future funding model

Press release

The Financial Ombudsman Service has today published a Discussion Paper on possible changes to its future funding model.

This is part of our commitment to consider revisions in our funding model as set out in our Action Plan to change and improve the organisation to provide the best service for our customers.

We are inviting financial services organisations, trade bodies, consumer groups and other stakeholders to provide feedback on the principles that should guide our funding model.

The paper is available on our website and it will be open for responses until 5 August 2022.  

A feedback statement will be published in October. The Financial Ombudsman will consult on its 2023/24 budget later this year, as part of its usual budget cycle. The options it plans to take forward from this paper, following feedback from stakeholders, will form part of that consultation.

Nausicaa Delfas, Interim Chief Executive and Chief Ombudsman of the Financial Ombudsman Service, said:  

As part of our commitment to change and improve to deliver a better service for our customers, we are today inviting views on proposals to change our funding model. 

This is to ensure that the Financial Ombudsman Service’s funding is sustainable for the future, is more transparent in its management of fixed costs, and more closely reflects the actual costs of resolving over 150,000 diverse complaints each year.

Notes to editors

About the Financial Ombudsman Service

The Financial Ombudsman Service was set up by Parliament to resolve individual complaints between financial businesses and their customers fairly, reasonably, quickly and as informally as possible. It can look into problems involving most types of money matters from payday loans to pensions, pet insurance to PPI. It is committed to sharing insight and experience to encourage fairness and confidence in financial services.

In December last year the Financial Ombudsman Service launched an Action Plan to change and improve the organisation to deliver a better service for our customers in a rapidly changing financial services environment. The Action Plan sets out the key strategic and operational changes that the service is undertaking to improve effectiveness and efficiency. 

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