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FEES 5.5A Case fees

Application

FEES 5.5A.1R

12The requirements in FEES 5.5A apply to:

  1. (1)

    every firm, payment service provider or electronic money issuer which is subject to the Compulsory Jurisdiction and every licensee which is subject to the Consumer Credit Jurisdiction of the Financial Ombudsman Service; and

  2. (2)

    every other person who is subject to the Compulsory Jurisdiction in relation to relevant complaints.

FEES 5.5A.2G

DISP 4.2.6 R applies certain rules in FEES to VJ participants as part of the standard terms, but substituting VJ participant for firm. As a result, VJ participants are required to pay the case fees set out in FEES 5.5A.6 R, FEES 5.5A.13 R and FEES 5 Annex 3R.

FEES 5.5A.3R

References in FEES 5.5A to "firms" are to be construed, where relevant, as including:

  1. (1)

    in accordance with the Ombudsman Transitional Order, unauthorised persons subject to the Compulsory Jurisdiction in relation to relevant complaints (see Transitional Provisions 6 and 7 of DISP); and

  2. (2)

    as a result of section 226 of the Act, unauthorised persons who were formerly firms in respect of complaints about acts or omissions which occurred at the time when they were firms, provided that the Compulsory Jurisdiction rules were in force in relation to the activity in question.

FEES 5.5A.4G

References in FEES 5.5A and FEES 5 Annex 3R to licensees are to be construed, where relevant as a result of section 226A (Consumer credit jurisdiction) of the Act, as including persons who were formerly licensees in respect of complaints about acts or omissions which occurred at the time when they were licensees, provided the complaint falls within a description specified in the Consumer Credit Jurisdiction rules in force at the time of the act or omission.

Purpose

FEES 5.5A.5R

The purpose of FEES 5.5A is to set out the requirements on firms, payment service providers, electronic money issuers, VJ participants (through the standard terms) and licensees to pay case fees (invoiced and collected directly by the FOS Ltd) in order to fund the operation of the Financial Ombudsman Service. FEES 5.5A also provides for unauthorised persons to pay case fees to the FOS Ltd in respect of any relevant complaints which it handles.

Standard Case fee

FEES 5.5A.6R

A firm or a licensee must pay to the FOS Ltd the standard case fee specified in FEES 5 Annex 3R, Part 13 in respect of each chargeable case relating to that firm or licensee which 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 5.5A.13 R to FEES 5.5A.22 R.

FEES 5.5A.7R

FEES 5.5A.6 R applies to payment service providers and electronic money issuers in the same way as it applies to firms.

FEES 5.5A.8G

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 and the supplementary case fee3, by the estimated number of chargeable cases which the Financial Ombudsman Service expects to close in the relevant financial year.

FEES 5.5A.9G

For 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 the FOS Ltd under section 234A (Funding by consumer credit licensees etc) of the Act and the supplementary case fee3, by the estimated number of chargeable cases which the Financial Ombudsman Service expects to close in the relevant financial year.

FEES 5.5A.10R

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 5.5A.11R

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

FEES 5.5A.12G

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 5.5A.10 R in respect of small credit unions.

Special case fees: complaints from small businesses

FEES 5.5A.13R

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

FEES 5.5A.14R

FEES 5.5A.13 R applies to payment service providers and electronic money issuers in the same way it applies to firms.

Special case fees: firms which cease to be authorised, persons which cease to be payment service providers or electronic money issuers and persons which cease to be licensees

FEES 5.5A.15R

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

FEES 5.5A.16R

FEES 5.5A.15 R applies to persons which cease to be licensees in the same way as it applies to firms which cease to be authorised.

FEES 5.5A.17R

FEES 5.5A.15 R applies to persons which cease to be payment service providers or electronic money issuers 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 5.5A.18R

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

FEES 5.5A.19G

Under the Ombudsman Transitional Order, the 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 the FOS Ltd handles those complaints, the unauthorised person concerned will be required to pay a special case fee.

Special case fees for 2001/02

FEES 5.5A.20R

A firm which was a member of PIA before commencement must pay to the FOS Ltd a special case fee, as specified in FEES 5 Annex 3R, in respect of each chargeable case relating to that firm received by the Financial Ombudsman Service after commencement and before 31 March 2002.

FEES 5.5A.21R

FEES 5.5A.20 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 PIA Ombudsman scheme.

FEES 5.5A.22R

A firm which was not a member of a former scheme before the commencement day must pay to the FOS Ltd a special case fee, as specified in FEES 5 Annex 3R, 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 5.5A.23G

A firm which was, before commencement, a member of PIA and a former scheme other than the PIA Ombudsman scheme will not, on account of the exclusion in FEES 5.5A.21 R, be required to pay the special case fee specified by FEES 5.5A.20 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 PIA Ombudsman scheme.

Supplementary case fee

FEES 5.5A.23AR

3A firm or licensee must pay to the FOS Ltd the supplementary case fee specified in FEES 5 Annex 3R , Part 2 in respect of each chargeable case relating to that firm or licensee which:

  1. (1)

    is referred to the Financial Ombudsman Service; and

  2. (2)

    in the Ombudsmans opinion, falls wholly or partly within the scope of DISP App 3 (Handling Payment Protection Insurance Complaints);

as well as any standard case fee under FEES 5.5A.6R or any special case fee under FEES 5.5A.13R to FEES 5.5A.22R.

FEES 5.5A.23BR

3FEES 5.5A.23A R applies to payment service providers and electronic money issuers in the same way as it applies to firms.

Case fee exemptions3

FEES 5.5A.24R

Notwithstanding the above, a firm, payment service provider, electronic money issuer or licensee will only be liable for, and the FOS Ltd 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.

FEES 5.5A.25G

A 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 Service's normal credit terms. For the financial year commencing 1 April 2005 and for subsequent financial years, the case fee exemption provision contained in FEES 5.5A.24 R applies. This provision is not retrospectively applicable to financial years prior to 1 April 2005.

FEES 5.5A.25AR

3Notwithstanding the above, a firm, payment service provider, electronic money issuer or licensee will only be liable for, and the FOS Ltd will only invoice for, the supplementary case fee in respect of the 26th and subsequent cases that fall within FEES 5.5A.23A R in any financial year.

FEES 5.5A.26R

A firm, payment service provider or electronic money issuer which is exempt under DISP 1.1.12 R is also exempt from FEES 5.5A.

FEES 5.5A.27R

A firm, payment service provider or electronic money issuer will only be exempt from FEES 5.5A.28 R to FEES 5.5A.30 R, as applicable, for any given financial year if it met the conditions in DISP 1.1.12 R on 31 March of the immediately preceding financial year.

Payment

FEES 5.5A.28R

A firm or licensee must pay to the FOS Ltd any standard case fee or supplementary case fee 3 or special case fee which it is liable to pay under FEES 5.5A.6 R, FEES 5.5A.13 R, FEES 5.5A.15 R, FEES 5.5A.18 R, FEES 5.5A.20 R, FEES 5.5A.22 R or FEES 5.5A.23A R3, as appropriate, in respect of chargeable cases for which it is invoiced by the FOS Ltd within 30 calendar days of the date when the invoice is issued by the FOS Ltd.

FEES 5.5A.29R

FEES 5.5A.28 R applies to payment service providers and electronic money issuers in the same way it applies to firms.

FEES 5.5A.30R

A firm or an unauthorised person which is subject to the Compulsory Jurisdiction in relation to a relevant complaint must pay any standard case fee or special case fee or supplementary case fee3 within 30 calendar days of the date when the invoice is issued by the FOS Ltd.

Leaving the Financial Ombudsman Service

FEES 5.5A.31R

Where a firm ceases to be authorised part way through a financial year:

  1. (1)

    it will remain liable to pay standard case fees in respect of chargeable cases against it which are closed by the Financial Ombudsman Service for the remainder of that financial year; and

  2. (2)

    it must pay the special case fee specified under FEES 5.5A.15 R in respect of any other chargeable cases against it which are closed by the Financial Ombudsman Service.

FEES 5.5A.32R

FEES 5.5A.31 R applies to persons ceasing to be licensees or payment service providers or electronic money issuers part way through a financial year in the same way as it applies to firms which cease to be authorised.

FEES 5.5A.33G

Firms, payment service providers and electronic money issuers will continue to be liable for any case fees relating to chargeable cases closed by the Financial Ombudsman Service after they cease to be authorised, or cease to be payment service providers or electronic money issuers. Firms, payment service providers and electronic money issuers will be charged the standard case fee where the complaint was closed by the Financial Ombudsman Service before the end of the year in which their authorisation ceased or, as the case may be, they ceased to be payment service providers or they cease to be electronic money issuers. The special case fee will apply to any complaint closed after the end of that year since the firm or payment service provider or electronic money issuer will no longer be contributing to the general levy.

FEES 5.5A.34G

Licensees will also continue to be liable for any case fees relating to chargeable cases closed by the Financial Ombudsman Service after they cease to be licensees. Licensees will be charged the standard case fee where the complaint was closed by the Financial Ombudsman Service before the end of the year in which they ceased to be licensees. The special case fee will apply to any complaint closed after the end of that year since the licensee will no longer be contributing to any sum determined under section 234A of the Act.

Late payments and remission of case fees

FEES 5.5A.35R

FEES 2.2.1 R applies as if a reference in that rule to the FOS levy is a reference to case fees payable under FEES 5.5A and a reference to the FSA is a reference to the FOS Ltd.

FEES 5.5A.36G

The FOS Ltd (in respect of case fees) may take steps to recover any money owed to it (including interest).

FEES 5.5A.37R

FEES 2.3.1 R and 2.3.2R applies as if a reference in those rules to the FOS levy is a reference to case fees payable under FEES 5.5A and a reference to the FSA is a reference to the FOS Ltd.