On 7 February 2025, the Financial Ombudsman Service (FOS) published a policy statement confirming that it will start charging professional representatives, including claims management companies (CMCs), to refer cases to it.
Background
The Financial Services and Markets Act (FSMA) 2023 gives the FOS the power to make rules requiring persons specified by HM Treasury to pay fees to its scheme. The Financial Services and Markets Act 2000 (Ombudsman Scheme) (Fees) Regulations 2024, which came into force on 3 December 2024, specify FCA-authorised CMCs and certain legal professionals as persons to whom the FOS may now charge a fee.
The FOS published a consultation paper in May 2024 on its detailed proposals to introduce a charging regime for CMCs. It also received consent from the Financial Conduct Authority, in January 2025, to make the rules relating to the new charging regime.
Policy statement
The policy statement explains that the FOS will charge CMCs in the following circumstances:
- Where the complaint was referred to the FOS on or after 1 April 2025.
- Where the complaint is referred by a ‘complainant representative’.
- Where the complaint exceeds the CMC’s annual free case provision.
The FOS makes clear that complainants will continue to be able to refer complaints to its service directly without any charge for doing so. In addition, individuals acting as a representative for a complainant (such as friends and family) are outside the scope of the charge, as are those providing their services pro bono (without any fees or charges becoming payable).
Next steps
The rules will come into force on 1 April 2025 and will apply in relation to complaints referred to the FOS on behalf of complainants on or after this date.