FCA Handbook - FEES 5.5D Case fees (for financial years beginning on or after 1 April 2026)

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FEES 5.5D Case fees (for financial years beginning on or after 1 April 2026)

Application

FEES 5.5D applies to respondents in relation to financial years beginning on or after 1 April 2026.

FEES 5.5B applies to respondents in relation to financial years ending before 1 April 2026.

VJ participants are included as a result of DISP 4.2.6R.

Any firm falling either into industry block 13 or industry block 15 in FEES 5 Annex 1R is not required to pay any case fee in respect of chargeable cases relating to those industry blocks.

A credit union or a community finance organisation which is subject to the minimum levy in an industry block is not required to pay any case fee in respect of chargeable cases relating to that industry block.

Arrangements similar to those for firms in industry blocks 13 and 15 have been made for small credit unions under FEES 5.5D.5R.

(1) Any of the following persons which are exempt under DISP 1.1.12R are also exempt from FEES 5.5D.
1. (a) a firm;
2. (b) a payment services provider;
3. (c) an electronic money issuer;
4. (d) a designated credit reference agency; and
5. (e) a designated finance platform.
(2) However, a person will only be exempt from FEES 5.5D in any financial year if it met the conditions in DISP 1.1.12R on 31 March of the immediately preceding financial year.

Purpose

The purpose of FEES 5.5D is to set out the requirements of category A respondents, category B respondents, category A group respondents and category B group respondents to pay case fees in relation to cases referred to the Financial Ombudsman Service.

These fees are towards funding the Financial Ombudsman Service, and are invoiced and collected directly by the FOS Ltd.

If, in relation to a financial year, the FOS Ltd considers (taking into account representations made by or on behalf of the relevant respondents) that two or more respondents should be identified as group respondents that form part of a charging group for the purposes of FEES 5.5D:

(1) FOS Ltd must notify all those respondents; and
(2) those respondents shall, for the purposes of FEES 5.5D, be treated as group respondents forming part of a relevant charging group in relation to the relevant financial year.

Monthly standard case fee for Category B respondents

Subject to FEES 5.5D.12R and FEES 5.5D.16R, a category B respondent and category B group respondent must pay to the FOS Ltd the standard case fee specified in FEES 5 Annex 5R Part 1 in respect of each chargeable case relating to that category B respondent or category B group respondent which is closed by the Financial Ombudsman Service during any financial year beginning on or after 1 April 2026 (regardless of when the chargeable case was referred to the Financial Ombudsman Service).

When a chargeable case is closed by the Financial Ombudsman Service during a financial year in circumstances:

(1) where the complaint was referred to the Financial Ombudsman Service on or after 1 April 2025;
(2) where a complainant representative was representing the complainant in relation to that complaint; and
(3) other than having been closed as a change in outcome in favour of the complainant,
the category B respondent or category B group respondent to which that chargeable case relates must instead pay to the FOS Ltd the reduced standard case fee specified in FEES 5 Annex 5R Part 1 in respect of each such chargeable case.

FEES 5.5D.12R applies, for example, where the complaint is closed by the Financial Ombudsman Service with an outcome that is not more favourable for the complainant compared to when the complaint was referred to the Financial Ombudsman Service, including where the complaint is closed as out of jurisdiction, dismissed or withdrawn.

(1) In respect of a financial year, the FOS Ltd shall credit the amount of £2,000 to the category B respondent or category B group respondent which is to be applied against the standard case fees which that category B respondent or category B group respondent is liable to pay during the relevant financial year.
(2) The credit provided for pursuant to (1):
1. (a) shall not be carried forward to any future financial years; and
2. (b) to the extent the amount of the credit exceeds the amount of standard case fees which are payable, the excess shall not be paid in cash to the category B respondent or category B group respondent.

A category B respondent must pay to the FOS Ltd any standard case fee that it is liable to pay under FEES 5.5D and which is invoiced by the FOS Ltd within 30 calendar days of the date when the invoice was issued by the FOS Ltd.

In relation to category B group respondents that are identified as part of a relevant category B charging group, the FOS Ltd shall:

(1) aggregate the amounts that each category B group respondent in the relevant category B charging group is liable to pay as calculated under FEES 5.5D.11R to FEES 5.5D.14R; and
(2) issue 1 invoice for that aggregate amount to any of the category B group respondents in the relevant category B charging group, which shall be payable as set out in that invoice.

In respect of a category B charging group, and notwithstanding FEES 5.5D.16R:

(1) an individual category B group respondent is jointly and severally liable for the liabilities of all category B group respondents in the relevant category B charging group under FEES 5.5D; and
(2) the FOS Ltd may issue an invoice to any category B group respondent for the liabilities of all category B group respondents in the relevant category B charging group under FEES 5.5D.

Quarterly provisional charges

If, in relation to a financial year, the FOS Ltd considers (taking into account representations made by or on behalf of the relevant respondent) that the respondent is a category A respondent, the FOS Ltd must notify that respondent and that respondent shall, for the purposes of FEES 5.5D, be treated as a category A respondent in relation to the relevant financial year.

If, in relation to a financial year, the FOS Ltd considers (taking into account representations made by or on behalf of the relevant respondent) that two or more respondents should be identified as category A group respondents that form part of a category A charging group for the purposes of FEES 5.5D):

(1) the FOS Ltd must notify all of those respondents; and
(2) those respondents shall, for the purposes of FEES 5.5D, be treated as category A group respondents forming part of a relevant category A charging group in relation to the relevant financial year.

Quarterly provisional charges – first and second quarters

In relation to a financial year:

(1) a category A respondent; and
(2) (subject to FEES 5.5D.23R), a category A group respondent,
must pay to the FOS Ltd the quarterly provisional charges calculated under FEES 5.5D.21R to FEES 5.5D.22R.

(1) In respect of the first and second quarters of a relevant financial year, the value of the provisional charges that a category A respondent and (subject to FEES 5.5D.23R) a category A group respondent is liable to pay is calculated according to the following formula:
((((A+B) / (C+D)) x E x £680 – £2,000) / 2) x 0.8,
where:
1. A = the number of chargeable cases relating to that respondent that were referred to the Financial Ombudsman Service before 1 January in the immediately preceding financial year which had not been closed before 1 January in the immediately preceding financial year.
2. B = the number of chargeable cases relating to that respondent that were referred to the Financial Ombudsman Service from 1 July to 31 December (both dates inclusive) in the immediately preceding financial year.
3. C = the number of chargeable cases referred to the Financial Ombudsman Service in respect of all respondents before 1 January in the immediately preceding financial year which had not been closed before 1 January in the immediately preceding financial year.
4. D = the number of chargeable cases referred to the Financial Ombudsman Service in respect of all respondents from 1 July to 31 December (both dates inclusive) in the immediately preceding financial year.
5. E = the number of chargeable cases in respect of all respondents which the Financial Ombudsman Service forecasts it will close from 1 April to 30 September (both dates inclusive) in the relevant financial year.
(2) For the purposes of the calculation in (1), the FOS Ltd may, if it considers it appropriate, modify inputs A, B, C and D to take into account the impact of any events which, if not taken into account, would, as regards a category A respondent or category A group respondent, result in the calculation of their estimated case fee liability for the first and second quarters of the financial year being materially inaccurate.
(3) In respect of the first and second quarters of a relevant financial year, the FOS Ltd will invoice a category A respondent and (subject to FEES 5.5D.23R) a category A group respondent for the amount calculated under (1) in 2 equal instalments in April and July of the relevant financial year (or on such later dates as FOS Ltd may specify).

Quarterly provisional charges – third and fourth quarters

(1) In respect of the third and fourth quarters of a relevant financial year, the value of the provisional charges that a category A respondent and (subject to FEES 5.5D.23R) a category A group respondent is liable to pay is calculated according to the following formula:
1. (((T – U – £2,000) + (((V+W) / (X+Y)) x Z x £680)) / 2) x 0.8,
where:
1. T = the total amount of standard case fees which that respondent would have been charged from 1 April to 30 September (both dates inclusive) of the relevant financial year had it been a category B respondent or category B group respondent and liable to monthly standard case fees under FEES 5.5D.11R to FEES 5.5D.14R.
2. U = the aggregate of the amounts invoiced to that respondent under FEES 5.5D.21R(3).
3. V = the number of chargeable cases relating to that respondent that were referred to the Financial Ombudsman Service before 1 October in the relevant financial year which had not been closed before 1 October in the relevant financial year.
4. W = the number of chargeable cases relating to that respondent that were referred to the Financial Ombudsman Service from 1 April to 30 September (both dates inclusive) in the relevant financial year.
5. X = the number of chargeable cases referred to the Financial Ombudsman Service in respect of all respondents before 1 October in the relevant financial year which had not been closed before 1 October in the relevant financial year.
6. Y = the number of chargeable cases referred to the Financial Ombudsman Service in respect of all respondents from 1 April to 30 September (both dates inclusive) in the relevant financial year.
7. Z = the number of chargeable cases in respect of all respondents which the Financial Ombudsman Service forecasts it will close from 1 October to 31 December (both dates inclusive) in the relevant financial year.
(2) For the purposes of the calculation in (1), the FOS Ltd may, if it considers it appropriate, modify inputs V, W, X and Y to take into account the impact of any events which, if not taken into account, would, as regards a category A respondent or category A group respondent, result in the calculation of their estimated case fee liability for the third and fourth quarters of the financial year being materially inaccurate.
(3) In respect of the third and fourth quarters of a relevant financial year, the FOS Ltd will invoice a category A respondent and (subject to FEES 5.5D.23R) a category A group respondent for the amount calculated under (1) in 2 equal instalments in October and January of the relevant financial year (or on such later dates as FOS Ltd may specify).

In respect of a category A charging group, the FOS Ltd shall:

(1) aggregate the amounts which each category A group respondent in that category A charging group is liable to pay as calculated under FEES 5.5D.21R(3) and FEES 5.5D.22R(3); and
(2) issue 1 invoice for that aggregate amount to any of the category A group respondents in the relevant category A charging group, which shall be payable as set out in that invoice.

In respect of a category A charging group, and notwithstanding FEES 5.5D.23R:

(1) an individual category A group respondent is jointly and severally liable for the liabilities of all category A group respondents in the relevant category A charging group under FEES 5.5D; and
(2) the FOS Ltd may issue an invoice to any category A group respondent for the liabilities of all category A group respondents in the relevant category A charging group under FEES 5.5D.

A category A respondent or category A group respondent must pay to the FOS Ltd any quarterly standard case fee which it is liable to pay under FEES 5.5D and which is invoiced by the FOS Ltd within 30 calendar days of the date when the invoice is issued by the FOS Ltd.

Quarterly provisional charges – end of year adjustment

If, had it been a category B respondent liable to monthly standard case fees under FEES 5.5D.11R to FEES 5.5D.14R, the amount of standard case fees that a category A respondent would have been charged during a relevant financial year exceeds the value of the provisional charges that it has paid during that financial year:

(1) the FOS Ltd shall invoice the category A respondent for the amount of that difference; and
(2) the category A respondent must pay the amount invoiced to the FOS Ltd within 30 calendar days of the date of the invoice.

If, had it been a category B respondent and liable to monthly standard case fees under FEES 5.5D.11R to FEES 5.5D.14R, the amount of standard case fees that a category A respondent would have been charged during a relevant financial year is lower than the value of provisional charges which it has paid during that financial year, the amount of the difference shall be credited to the category A respondent and set off against the provisional charges which the category A respondent is liable to pay under FEES 5.5D in respect of the following financial year.

(1) the FOS Ltd shall invoice the amount of that difference to any of the category A group respondents in the relevant category A charging group; and
(2) that category A group respondent must pay the amount invoiced to the FOS Ltd within 30 calendar days of the date of the invoice.

If, had they been category B group respondents and liable to monthly standard case fees under FEES 5.5D.11R to FEES 5.5D.14R, the amount of standard case fees that category A group respondents in a relevant category A charging group would (in aggregate) have been charged during a relevant financial year is lower than the value of the provisional charges which they have (in aggregate) paid, the amount of the difference shall be credited to the relevant category A charging group and set off against the provisional charge that the category A charging group is liable to pay under FEES 5.5D in respect of the following financial year.

Leaving the Financial Ombudsman Service

Where a respondent ceases to be a firm, payment service provider, electronic money issuer, CBTL firm, a designated credit reference agency, a designated finance platform, VJ participant or claims management company (as the case may be) part way through a financial year it will remain liable to pay any case fees due under FEES 5.5D.

Late payment of invoices

If a respondent does not pay an invoice payable under FEES 5.5D in full to the FOS Ltd before the end of the date on which it is due, that respondent must pay to the FOS Ltd in addition:

(1) interest on any unpaid amount of the invoice at the rate of 5% per annum above the Official Bank Rate from time to time, accruing on a daily basis from the date on which the amount concerned became due; and
(2) an administrative fee of up to 25% of the amount of the invoice outstanding at the time, in the event the FOS Ltd needs to take steps to recover any amounts payable to it under FEES 5.5D.

The FOS Ltd may take steps to recover any amount owed to it (including interest).

Time limit for making a claim for remission or repayment.

(1) In respect of a category B respondent or category B group respondent, no claim for the remission or repayment of all or part of any case fee (or any administrative fee due under FEES 5.5D.31R in relation to it) may be made to FOS Ltd more than 6 months after the end of the calendar month in which the chargeable case to which the case fee relates was closed (irrespective of when or whether the amounts in question were paid to the FOS Ltd).
(2) In respect of a category A respondent or category A group respondent, no claim for the remission or repayment of all or part of any amount which was invoiced by the FOS Ltd under FEES 5.5D (or any administrative fee due under FEES 5.5D.31R in relation to it) may be made to FOS Ltd more than 6 months after the end of the calendar month in which the chargeable case to which that claim relates was closed (irrespective of when or whether the amounts in question were paid to the FOS Ltd).

The FOS Ltd may allow a claim to be made outside the time limits prescribed in FEES 5.5D.33R if it is satisfied that the failure to make a claim within the time limits prescribed was as a result of exceptional circumstances.

If it appears to the FOS Ltd that in the exceptional circumstances of a particular case the payment of any amount under FEES 5.5D would be inequitable, the FOS Ltd may reduce or remit all or part of the amount in question which would otherwise be payable.