On 21 March 2016, the FOS published its plan and budget for 2016/17 and summarised feedback received further to its consultation paper published in December 2015

Points of interest include:

  • FOS has set an operational income budget for 2016/17 of £226.5 million, which will be funded by a combination of levies and case fees.
  • The estimated number of new complaints about packaged bank accounts that the FOS expects to receive in 2016/17 has been increased from 15,000 to 30,000.
  • During 2016/17, FOS will streamline its casework operating model, engage with financial businesses and other organisations, and include more detail in the complaints data it publishes.
  • The majority of respondents commenting on the proposed introduction of a deadline for complaining about mis-sold PPI thought it would lead to an increase in PPI complaints brought to FOS. However, FOS received a wide range of views on the impact of the FCA's proposed rules and guidance for handling PPI complaints following the Supreme Court's judgment in Plevin v Paragon Finance. Respondents were broadly split on the impact of the FCA's new complaint handling rules and summary resolution communication.
  • In the consultation, FOS had asked for views on its approach to managing its reserves during 2016/17 and its decision not to return (for now) any of the reserves it is holding. Those who commented on this were supportive of this approach, although several said it may need reviewing as the position in relation to PPI complaints develops. FOS therefore intends to proceed with its funding proposals. It agrees that, given the uncertainties ahead, it should use its reserves to further develop its service.