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FOS consults on funding

FOS is consulting on its future funding model.  It says it is looking forward to a time when it is not dominated by PPI, and is looking at how it should:

  • rebalance the proportion of income it gets from its levy as opposed to case fees. Currently 85% of funding is from case fees, but FOS proposes a 50/50 balance;
  • changing the current model of 25 free cases per form to 10, and to 50 for each group in the group account fee arrangement. It says this still means that 98% of firms who have complaints referred to it will not pay fees; and
  • keeping reserves of a minimum of 6 months’ operating income (as opposed to the current 3).

FOS welcomes views by 13 August.

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Emma Radmore