Laura WilesThe FOS is consulting on its proposed plans and budget for 2025/26.
The FOS noted that due to the uncertainty around motor finance commission cases, and the wider regulatory review of the redress framework, its plans and budget need to be flexible. It currently expects to receive 240,000 cases in 2025/26, which is an 18% reduction in its forecast for 2024/25. However, its forecast scenarios suggest that this figure is susceptible to the key variables of motor finance commission cases and professional representative activity.
In terms of budget, the FOS forecasts an operating cost of £287.1m, an increase of £36.3m on 2024/25, primarily because of the additional resource required to deliver 45,000 more complaints than the previous year. It is budgeting a reduction of 4% in cost per case to £1,044. The budget is drafted on the basis that, as per its May 2024 consultation, professional representatives will be liable to pay case fees during the course of the coming year.
The FOS does not propose to increase its case fee or compulsory jurisdiction levy for firms, nor to increase its voluntary jurisdiction levy
The consultation also includes questions on:
- what volume and trends the FOS should be expecting in banking and consumer credit, insurance, investments and pensions, SME volumes, CMC volumes and funeral plans;
- which novel issues or trends might be seen in 2025/26;
- what challenges respondents are seeing and anticipating in connection with motor finance complaints while the regulatory review and legal appeal remain unresolved
The consultation closes on 29 January 2025. The finalised plan and budget will be published on 31 March 2025.