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You are viewing the version of the document as on 2022-12-01.

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DISP 2.3 To which activities does the Compulsory Jurisdiction apply?

7Activities by firms

DISP 2.3.1 R RP

7The Ombudsman can consider a complaint under the Compulsory Jurisdiction if it relates to an act or omission by a firm in carrying on one or more of the following activities:

  1. (1)

    regulated activities (other than auction regulation bidding and 23administering a benchmark);

    202210
  2. (1A)

    payment services;7

  3. (1B)

    [deleted]13

    12
  4. (1C)

    CBTL business;

    14
  5. (2)

    [deleted]1132

    1132
  6. (3)

    lending money secured by a charge on land;

  7. (4)

    lending money (excluding restricted credit where that is not a credit-related regulated activity1132 );

    1132
  8. (5)

    paying money by a plastic card (excluding a store card where that is not a credit-related regulated activity1132 );

    1132
  9. (6)

    providing ancillary banking services;

  10. (7)

    offering and/or issuing of investments by ISPVs;19

  11. (8)

    18giving non-personal recommendation advice;

or any ancillary activities, including advice, carried on by the firm in connection with them.630

DISP 2.3.1A R RP

17The Ombudsman can also consider a complaint under the Compulsory Jurisdiction if it relates to an act or omission by:

  1. (1)

    an investment firm authorised under the UK provisions which implemented22MiFID when providing investment services or ancillary services;

  2. (2)

    a CRD credit institution when providing one or more investment services;

  3. (3)

    an investment firm authorised under the UK provisions which implemented22MiFID or a CRD credit institution when selling structured deposits to clients, or advising clients on them;

  4. (4)

    a collective portfolio management investment firm when providing the activities permitted by the UK provisions which implemented22 article 6(3) of the UCITS Directive; and

  5. (5)

    a collective portfolio management investment firm when providing the activities permitted by the UK provisions which implemented22 article 6(4) of the AIFMD.

[Note: see article 1(1), 1(3) and 1(4) and article 75 of MiFID, and articles 1 and 26(5) of the MiFID Org Regulation]

DISP 2.3.1B G RP

17For the purposes of DISP 2.3.1AR, the Ombudsman can consider a complaint about an act carried out by a MiFID investment firm that is preparatory to the provision of an investment service or ancillary service which is an integral part of such a service. This includes, for example, generic advice given by a MiFID investment firm to a client prior to, or in the course of, the provision of investment advice or another investment service or ancillary service.

[Note: recitals 15 and 16 of the MiFID Org Regulation]

7Activities by firms and unauthorised persons subject to a former scheme

DISP 2.3.2 G RP

The Ombudsman can also consider under the Compulsory Jurisdiction:630

6 30
  1. (1)

    as a result of the Ombudsman Transitional Order, a relevant existing complaint or a relevant new complaint that relates to an act or omission by a firm or an unauthorised person which was subject to a former scheme immediately before commencement;21

  2. (2)

    as a result of the Mortgages and General Insurance Complaints Transitional Order, a relevant transitional complaint that relates to an act or omission by a firm (or an unauthorised person that ceased to be a firm after the relevant commencement date) which was subject to a former scheme at the time of the act or omission; or21

  3. (2A)

    as a result of the Claims Management Order, a relevant claims management complaint that relates to an act or omission by a firm or an unauthorised person which was subject to a former scheme at the time of the act or omission;21

  1. (2B)

    24as a result of the Funeral Plans Order, a relevant transitional funeral plan complaint that relates to an act or omission by a firm or unauthorised person which was subject to a former scheme at the time of the act or omission;

provided that:

  1. (3)

    the act or omission occurred in the carrying on by that firm or unauthorised person of an activity to which that former scheme applied; and

  2. (4)

    the complainant is eligible and wishes to have the complaint dealt with by the Ombudsman.

    7

Activities by firms and unauthorised persons previously subject to the Consumer Credit Jurisdiction

DISP 2.3.2-A G RP

11 32In accordance with article 11 of the Regulated Activities Amendment Order, the Ombudsman can also consider under the Compulsory Jurisdiction:

  1. (1)

    a relevant existing credit-related complaint referred to the Financial Ombudsman Service before 1 April 2014 which was formerly being dealt with under the Consumer Credit Jurisdiction; and

  2. (2)

    a relevant new credit-related complaint referred to the Financial Ombudsman Service on or after 1 April 2014 which relates to an act or omission which took place before 1 April 2014;

    provided that:

    1. (a)

      the complaint could have been dealt with under the Consumer Credit Jurisdiction (disregarding whether the complainant would have been eligible under rules made for the purposes of the Consumer Credit Jurisdiction and whether the complaint would have fallen within a description specified in those rules) but for the repeal of section 226A of the Act; and

    2. (b)

      the complainant is eligible and wishes to have the complaint dealt with under the Financial Ombudsman Service.

Activities by payment service providers

DISP 2.3.2A R RP

7The Ombudsman can consider a complaint under the Compulsory Jurisdiction if it relates to an act or omission by a payment service provider in carrying on:

  1. (1)

    payment services; or

  2. (2)

    credit-related regulated activities;1132

    1132

or any ancillary activities, including advice, carried on by the payment service provider in connection with them.

Activities by electronic money issuers

DISP 2.3.2B R RP

9 31The Ombudsman can consider a complaint under the Compulsory Jurisdiction if it relates to an act or omission by an electronic money issuer in carrying on:

  1. (1)

    issuance of electronic money; or

  2. (2)

    credit-related regulated activities;1132

    1132

or any ancillary activities, including advice, carried on by the electronic money issuer in connection with them.

Activities by CBTL firms

DISP 2.3.2BA R RP

The Ombudsman can consider a complaint under the Compulsory Jurisdiction if it relates to an act or omission by a CBTL firm in carrying on CBTL business or any ancillary activities, including advice, carried on by the CBTL firm in connection with its CBTL business.

14

Consumer redress schemes

DISP 2.3.2C G RP

8As a result of section 404B(11) of the Act, the Ombudsman can also consider under the Compulsory Jurisdiction a complaint from a complainant who:

  1. (1)

    is not satisfied with a redress determination made by a respondent under a consumer redress scheme; or

  2. (2)

    considers that a respondent has failed to make a redress determination in accordance with a consumer redress scheme.

Activities by designated credit reference agencies

DISP 2.3.2D R RP

15The Ombudsman can consider a complaint under the Compulsory Jurisdiction if it relates to an act or omission by a designated credit reference agency in carrying on:

  1. (1)

    the activity of providing credit information under the Small and Medium Sized Business (Credit Information) Regulations; or

  2. (2)

    any ancillary activities, including advice, carried on by the designated credit reference agency in connection with the activity in (1).

Activities by designated finance platforms

DISP 2.3.2E R RP

16The Ombudsman can consider a complaint under the Compulsory Jurisdiction if it relates to an act or omission by a designated finance platform in carrying on:

  1. (1)

    the activity of providing specified information under the Small and Medium Sized Business (Finance Platforms) Regulations; or

  2. (2)

    any ancillary activities, including advice, carried on by the designated finance platform in connection with the activity in (1).

General

DISP 2.3.3 G RP

Complaints about acts or omissions include those7 in respect of activities for which the firm,931payment service provider7, 14electronic money issuer,15CBTL firm,16designated credit reference agency15 or designated finance platform16 is responsible (including business of any appointed representative or agent7 for which the firm,931payment institution,15electronic money institution,16designated credit reference agency15 or designated finance platform16 has accepted responsibility).630

7 7 14 9 31 14 7 9 31
DISP 2.3.4 R RP

A complaint about an authorisedprofessional firm cannot be handled under the Compulsory Jurisdiction of the Financial Ombudsman Service if it relates solely to a non-mainstream regulated activity and can be handled by a designated professional body.630

DISP 2.3.5 G RP

7The Compulsory Jurisdiction includes complaints about the UK end of 'one leg' payment services transactions, i.e. services provided from UK establishments that also involve a payment service provider located outside the EEA. The Compulsory Jurisdiction also includes complaints about payment services irrespective of the currency of the transaction.

DISP 2.3.6 G

25Schedule 6A to the Act sets out a procedure to enable the FCA to cancel or vary the Part 4A permission of a person who, it appears to the FCA, is not carrying on the regulated activity to which the Part 4A permission relates. In some cases, this may result in the person no longer being a respondent following cancellation of all their Part 4A permissions. Paragraph 5 of Schedule 6A to the Act sets out a procedure for the subsequent annulment of the decision to cancel or vary the person’s Part 4A permission in specified circumstances where the FCA is satisfied that it is just and reasonable to do so. Where the FCA grants an application for annulment, either with conditions or unconditionally, paragraph 6 of Schedule 6A to the Act sets out its effect, which includes that the cancellation or variation of the Part 4A permission is treated as if it had never taken place. As a result of the effect of the annulment, the person may therefore be a respondent for the purposes of any complaints which arise during the period in which the person’s Part 4A permission was cancelled or varied.