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Status: You are viewing the version of the handbook as on 2009-03-31.

FEES 5.5 Case fees

Standard case fee

FEES 5.5.1R

A firm or licensee 5must pay to FOS Ltd the standard case fee specified in part 3 of FEES 5 Annex 1 in respect of each chargeable case relating to that firm or licensee 5which is closed by the Financial Ombudsman Service, unless a special case fee is payable or has been paid in respect of that case under FEES 5.5.6 R to FEES 5.5.12 R.

FEES 5.5.2G

The standard case fee, which will be subject to consultation each year, will be calculated by dividing the annual budget for the Compulsory Jurisdiction, less the amount to be raised by the general levy, by the estimated number of chargeable cases which the Financial Ombudsman Service expects to close in the relevant financial year.

FEES 5.5.2AG

5For the purposes of the Consumer Credit Jurisdiction, the standard case fee, which will be subject to consultation each year, will be calculated by dividing the annual budget for the Consumer Credit Jurisdiction, less the amount to be raised by the sum determined by FOS Ltd under section 234A of the Act, by the estimated number of chargeable cases which the Financial Ombudsman Service expects to close in the relevant financial year.

FEES 5.5.3R

A credit union which is subject to the minimum levy in an industry block is not required to pay a standard case fee in respect of chargeable cases relating to that industry block.

FEES 5.5.4R

Any firm falling into either industry block 13 or industry block 15 in part 2 of FEES 5 Annex 1 is not required to pay the standard case fee in respect of chargeable cases relating to those industry blocks.

FEES 5.5.5G

The firms in industry blocks 13 and 15 are cash plan health providers and small friendly societies. These arrangements have been made in respect of these firms to take account of the fact that the amount at issue is likely to be small relative to the case fee. Instead, the full unit cost of handling complaints against these firms will be recovered through the general levy in accordance with the relevant tariff-base and no case fee will be payable. Similar arrangements have been made under FEES 5.5.3 R in respect of small credit unions.

Special case fees: complaints from small businesses

FEES 5.5.6R

A firm must pay to FOS Ltd a special case fee, as specified in part 3 of FEES 5 Annex 1 in respect of each chargeable case relating to that firm closed by the Financial Ombudsman Service which was referred to the Financial Ombudsman Service by eligible complainants who fall within DISP 2.7.3R (2), DISP 2.7.6R (12)(a) and DISP 2.7.6R (12)(a).1

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Special case fees: firms which cease to be authorised and persons which cease to be licensees5

FEES 5.5.7R

A firm which ceases to be authorised must pay to FOS Ltd a special case fee, as specified in part 3 of FEES 5 Annex 1, in respect of each chargeable case relating to that firm closed by the Financial Ombudsman Service which concerned an act or omission occurring when the firm was authorised and where the complaint was made after its authorisation ceased.

FEES 5.5.7AR

5DISP 5.5.7R applies to persons which cease to be licensees in the same way as it applies to firms which cease to be authorised.

Special case fees: relevant complaints against persons who were subject to a former scheme

FEES 5.5.8R

An unauthorised person who is subject to the Compulsory Jurisdiction in relation to a relevant complaint must pay to FOS Ltd a special case fee as specified in part 3 of FEES 5 Annex 1 in respect of each chargeable case relating to that unauthorised person closed by the Financial Ombudsman Service.

FEES 5.5.9G

Under the Ombudsman Transitional Order, FOS Ltd can handle complaints about members of a former scheme which that scheme could have handled before commencement, even if the unauthorised person concerned does not become authorised by the FSA after that date. Where FOS Ltd handles such complaints, the unauthorised person concerned will be required to pay a special case fee.

Special case fees for 2001/02

FEES 5.5.10R

A firm which was a member of PIA before commencement must pay to FOS Ltd a special case fee, as specified in FEES 5 Annex 1, in respect of each chargeable case relating to that firm received by the Financial Ombudsman Service after commencement and before 31 March 2002.

FEES 5.5.11R

FEES 5.5.10 R does not apply in relation to a chargeable case which relates to a complaint which proceeded or would have proceeded under a former scheme other than the PIAOB scheme.

FEES 5.5.12R

A firm which was not a member of a former scheme before the commencement day must pay to FOS Ltd a special case fee, as specified in FEES 5 Annex 1, in respect of each chargeable case which relates to business conducted by the firm after the commencement day and which is closed by the Financial Ombudsman Service before 31 March 2002.

FEES 5.5.13G

The relevant provisions of FEES 5.5 will be applied to VJ participants through the standard terms.

FEES 5.5.14G

A firm which was, before commencement, a member of PIA and a former scheme other than the PIAOB scheme will not, on account of the exclusion in FEES 5.5.11 R, be required to pay the special case fee specified by FEES 5.5.10 R in respect of all chargeable cases relating to it but only those which arise in respect of investment business matters which would have been eligible under the PIAOB scheme.

Case fee exemption

FEES 5.5.15R

Notwithstanding the above, a firm or licensee will only be liable for, and FOS will only invoice for, the standard case fee or, as the case may be, the special case fee, in respect of the fourth and subsequent chargeable cases in any financial year.6

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FEES 5.5.16G

4A case fee exemption provision was first applied in the financial year 1 April 2004 to 31 March 2005. For that financial year only, each authorised firm was invoiced for a standard case fee for the third and subsequent chargeable case received by the Financial Ombudsman Service, subject to the annual levy having been invoiced and paid by the firm within the Financial Ombudsman Services normal credit terms. For the financial year commencing 1 April 2005 and for subsequent financial years, the case fee exemption provision contained in FEES 5.5.15 R applies. This provision is not retrospectively applicable to financial years prior to 1 April 2005.