Financial Ombudsman changes industry levy plans due to coronavirus pressure

Industry to pay more still

The Financial Ombudsman Service (FOS) has changed ongoing plans to alter how the ombudsman is funded in light of the financial impact of the coronavirus.

Last year, the FOS began consulting on changes to its levy funding structure. In the most recent financial year, 85% of FOS costs were paid by firms for each complaint taken to the ombudsman, while 15% of funding comes from an industry-wide levy. However, in 2019 the FOS began consulting on changes that would see the industry as a whole pay more towards the levy, while those with complaints against them would pay proportionately less.  At the time, the FOS proposed a 50:50 split between the industry and those with complaints against them. The move was met with criticism from the likes...