Seven responses to the FCA’s consultation on fees regarding the PPI deadline expressed concern that PPI had relatively huge fee when processed with the Financial Ombudsman Service.
According to its new statement on regulated fees and levies for 2016 to 2017, the Financial Conduct Authority said it would have advisers contribute 2 per cent of the total FOS levy of £24.5m or £490,000.
Several consulted said the size of the levy is disproportionate to the number of PPI complaints. With many of the FOS’ workload focusing on PPI, the general charge is unfair.
In response, the FCA stated: “We do not believe that the levy on any particular fee block is disproportionate, given that the levy is a small part of the overall Fos budget, and all levy payers benefit from the existence of the FOS.
The comments we received about claims management companies and case fees are not relevant to the consultation question, as the FOS consults separately on its case fees.”
The FOS said: “We will be consulting in due course about the allocation methods in respect of the levy for the new money guidance body.
“It is expected that the new body will be operational by April 2018 and that it will be accountable to the Treasury with the FCA’s role limited to collecting the levy.”