DISP 2.5 Which firms are subject to the jurisdiction of the Financial Ombudsman Service?
All firms are subject to the Compulsory Jurisdiction of the Financial Ombudsman Service. VJ participants are subject to the Voluntary Jurisdiction and to DISP 2 to the extent specified in the standard terms (DISP 4).
Firms may, however, be exempt from the requirements of DISP 1 (Complaint handling procedures for firms) and DISP 5 (Financial Ombudsman Service funding rules), if they qualify under DISP 1.1.7 RR (Exemption).
Members of the Society of Lloyd's are treated as firms for the purposes of the Compulsory Jurisdiction (including the rules in DISP 1 relating to firms' complaints procedures) and are subject to DISP 1 as a result of the insurance market direction given in LLD 6.2.1 D, under section 316 of the Act (Direction by Authority). However, as set out in DISP 1.7, members will individually comply with DISP 1 if and only if all complaints by policyholders against members are dealt with under the internal procedures established by the Society of Lloyd's for handling those complaints, provided that these procedures themselves comply with DISP 1. Accordingly, certain of the obligations under DISP 1, for example, the obligation to report on complaints received, must be complied with by the Society on behalf of members.