‘Financial instrument’ covers a broad range of securities and contracts that are traded in the financial markets, including transferable debt and equity securities, money-market instruments, units in collective investment undertakings, options, futures, swaps, forward rate agreements and other derivative contracts, and emissions allowances.

Under the Financial Services and Markets Act 2000 (FSMA 2000), the 'Financial Ombudsman Scheme' or 'FOS' refers to a scheme under which certain disputes may be resolved quickly and with a minimum formality by an independent person.

Law360: Britain's financial dispute-resolution body told a cross-party group of members of Parliament on 27 February 2024 it is braced for an avalanche of extra claims later this year when banks must recompense victims duped into transferring money to fraudsters.

The Financial Ombudsman Service (FOS) has published its plans and budget proposals for the 2025/2026 financial year including its intention to freeze all case fees and levies for financial firms.

The Financial Ombudsman Service (FOS) has reported a continued fall in the number of new cases it received in the second quarter of 2025/26. Between July and September 2025, the FOS received 46,300 new complaints, a decrease of more than a third compared with 73,700 in the same period of 2024/25. The drop follows the introduction of case fees for professional representatives earlier this year.

The compulsory jurisdiction of the Financial Ombudsman Service (FOS) is defined in Chapter 2 of the Financial Conduct Authority (FCA) Dispute Resolution: Complaints Sourcebook (DISP), in rules made pursuant to section 226 of the Financial Services and Markets Act 2000 (FSMA 2000), which provides that a complaint which relates to an act or omission of a person (the respondent) in carrying on an activity to which compulsory jurisdiction rules apply should be dealt with under the FOS scheme, providing certain conditions apply. Those conditions are that: • the complainant is eligible and wishes to have the complaint dealt with under the FOS scheme • the respondent was an authorised person at the time of the act or omission to which the complaint relates, and • the act or omission to which the complaint relates occurred at a time when compulsory jurisdiction rules were in force in relation to the activity in question The compulsory jurisdiction rules are rules made by the FCA (in DISP 2) for the purposes of FSMA 2000, s 226, specifying

What is an 'eligible complainant'? In order to refer a complaint to the Financial Ombudsman Service (FOS), a person must be an 'eligible complainant'. This applies irrespective of whether the complaint is brought under the FOS’ ‘Compulsory Jurisdiction’ or its ‘Voluntary Jurisdiction’ (see below and Practice Notes: Financial Ombudsman Service—compulsory jurisdiction and Financial Ombudsman Service—voluntary jurisdiction). A complaint may only be dealt with under the FOS if it is brought by, or on behalf of, an eligible complainant. Further, as long as the complainant is eligible, the complaint can be brought on their behalf by a person authorised by them to do so, or a person legally entitled to do so, even if that person (the agent) is not themselves an eligible complainant—for example, if the complainant chooses to be represented by a claims management company (CMC) or a family member. In order for the eligible complainant to authorise another to act on their behalf, they must sign the FOS complaint form, and fill in the relevant section with the third party's details. If the complainant

Purpose of the Financial Ombudsman Service The Financial Ombudsman Service (FOS) is an independent dispute resolution scheme that exists to assist consumers in resolving complaints with financial services firms. The FOS provides independent ombudsmen who review and resolve complaints between consumers and firms. The FOS is not a regulator. The service provided by the FOS is impartial, and its decision-making is wholly independent from the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA). Its service is free of charge for complainants, and its jurisdiction covers dealing with complaints about the vast majority of regulated financial products and services, provided in or from the UK. The Dispute resolution: Complaints (DISP) section of the FCA Handbook sets out in detail the role, jurisdiction and procedures of the FOS. For more information on the FOS and complaints against firms in general see: Complaints against firms—financial services—overview and Practice Note: Complaints handling by financial services firms. Scope of the Financial Ombudsman Service's jurisdiction The basis of the FOS’ powers is set out in Part XVI of the Financial

Awards by the FOS Where a complaint to the Financial Ombudsman Service (FOS) is upheld, the FOS may order a respondent firm (the respondent) to pay money, costs and/or interest to the complainant, and/or may direct the respondent to do anything else the FOS regards as appropriate. The rules are set out in DISP 3.7 in the FCA Handbook and have their basis in sections 229 and 230 of the Financial Services and Markets Act 2000. Money awards Different maximum limits apply depending on when the case was brought to the FOS and the date of the act or omission by the respondent: • £455,000 if the act or omission complained about occurred on or after 1 April 2019 and the complaint was referred to the FOS on or after 1 April 2026 • £445,000 if the act or omission complained about occurred on or after 1 April 2019 and the complaint was referred to the FOS on or after 1 April 2025 • £430,000 if the act or omission complained about occurred on or after 1 April

The time limits which apply to a complaint taken to the Financial Ombudsman Service (FOS) are set out in Chapter 2 of the Dispute Resolution: Complaints (DISP) sourcebook in the FCA Handbook. DISP 2.8.2 R states that the FOS cannot consider a complaint if the complainant refers it to the FOS more than: • six months after the date on which the firm about which the complainant is complaining (the respondent) sent the complainant its final response, redress determination (issued under a consumer redress scheme) or summary resolution communication (summary resolution communication as defined under DISP 1.5.4 R) (and the response must tell the complainant about the 6 month time limit that the complainant has to refer the complaint to the FOS) (see below), or • six years after the event complained of, or (if later) three years from the date on which the complainant became aware (or ought reasonably to have become aware) that he had cause for complaint, unless the complainant referred the complaint to the respondent or to the FOS within that period and has a written

The Financial Ombudsman Service (FOS) has two areas of jurisdiction: • the compulsory jurisdiction (ie the jurisdiction of the FOS to which firms authorised by the Financial Conduct Authority (FCA), payment service providers, electronic money issuers and certain others are compulsorily subject), and • the voluntary jurisdiction (ie the jurisdiction of the FOS for those businesses which are not covered by the FOS' compulsory jurisdiction but which would like to join the FOS’ jurisdiction and participate by contract) Both ‘compulsory jurisdiction’ and ‘voluntary jurisdiction’ are defined in detail in the Glossary to the FCA Handbook. The voluntary jurisdiction of the Financial Ombudsman Service (FOS) is dealt with in Chapters 2 and 4 of the FCA’s Dispute Resolution: Complaints Sourcebook (DISP) rules, and is set out under section 227 and Schedule 17, Part IV of the Financial Services and Markets Act 2000 (FSMA 2000). Under FSMA 2000, s 227(1)–(2), the FOS can consider a complaint which relates to an act or omission of a firm (the respondent) in carrying on an activity to which voluntary

Law360: The UK Financial Ombudsman Service said on 4 April 2024 that it had upped its estimate of how many complaints it expects to receive in the coming financial year to 210,000 from 181,000 due to increased everyday financial concerns.