Financial Ombudsman Service

The Financial Ombudsman Service (FOS) was set up by law to resolve disputes between members of the public and financial institutions, including building societies. The service is free to the public and completely independent. Customers should take their complaint to the institution involved before contacting the ombudsman.

If the Ombudsman determines a complaint in favour of the consumer, it may make a money award for fair compensation (up to £100,000) to be paid for by the firm and/or a direction that the firm takes steps to rectify the matter complained of. The FSA is currently reviewing this £100,000 limit.

The FSA's Handbook of Rules and Guidance (see link below) contains the Dispute Resolution Complaints Sourcebook . This sets out rules and guidance about firms’ complaints handling procedures and about the procedures of the FOS. The rules include

• Complaint handling procedures for firms
• Jurisdiction of the FOS
• Complaint handling procedures for the FOS
• FOS funding rules
• Handling endowment complaints.
  

The FOS must determine a complaint by considering what is fair and reasonable. The ombudsman must take into account the relevant law, regulations, regulators’ rules and guidance and standards, relevant codes of practice and, where appropriate, what the Ombudsman considers to have been good industry practice at the relevant time.

Building societies have long supported the existence of an independent body to examine complaints against financial institutions. The existence of such a body will increase trust and confidence in the financial system. The BSA has been, and continues to be, involved in consultation with the FOS to ensure the ombudsman works effectively and fairly.