The Channel Islands Financial Ombudsman (CIFO) has published a consultation paper today (11th November 2016) on its proposal to increase case fees from 1 January 2017.
CIFO’s current funding is based on the initial model proposed by the relevant departments of the States of Jersey and States of Guernsey in 2014.
CIFO plans to carry out and consult on a broad review of the funding approach, informed by sufficient historical complaint volume data from the first two full years of operation (2016 – 2017), with revisions to come into effect in 2019.
As an interim measure and in response to informal industry feedback, CIFO is proposing in the current consultation paper to increase case fees so that they provide an increased proportion of its funding. This approach seeks to place a greater funding responsibility upon financial services providers who generate complaints thereby reducing the proportion of cost borne by the industry as a whole through levies.
The deadline for responses to the consultation is Monday 12th December 2016