Ombudsman Scheme funding rules virtually complete

A small number of special transitional case fee rules are required as part of the transitional funding arrangements for funding the scheme during the post N2 portion of the current financial year (from December 1 2001 to March 31 2002).

The joint FSA/FOS policy statement also incorporates feedback on arrangements for the funding of the FOS and the virtually final text of these rules. Although consultation on the FOS funding rules finished earlier this year, they could not be finalised until the FSAs own fee-raising arrangements were settled because FOS funding rules are intended to mirror those of the FSA as far as possible, particularly with regard to FSA fee-blocks and tariff-bases. Tariff-rates and case fees for 2002/03 funding rules will be consulted on as part of the normal FOS budget process in January.

Details of the consultation, together with a joint FSA/FOS policy statement providing feedback on the consultation process and the virtually final text of the rules, are published today on the FSAs website www.fsa.gov.uk. The closing date for consultation is 31 October 2001.

Notes for editors

1. The new consultation covers special transitional case fees, payable from N2 until 31 March 2002, in respect of:

   i) complaints about former PIA members

   ii) complaints about new joiners handled by FOS between N2 and 31 March 2002

   iii) complaints about unauthorised firms in respect of pre-N2 business subject to the Compulsory Jurisdiction as a result of the Treasurys Ombudsman Transitional Order.

2. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

3. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.