The purpose of this chapter is to set out rules and guidance on the scope of the Compulsory Jurisdiction and the Voluntary Jurisdiction, which are the Financial Ombudsman Service's two 820jurisdictions:

8 20 8 20

1. (1)

   the Compulsory Jurisdiction is not restricted to regulated activities,719payment services6 , 9 issuance ofelectronic money, 719 and CBTL business 9 and covers:

   9
   1. (a)

      certain complaints against firms (and businesses which were firms at the time of the events complained about);

      820
   2. (b)

      relevant complaints against former members of former schemes under the Ombudsman Transitional Order and the Mortgage and General Insurance Complaints Transitional Order;

      10820
   3. (c)

      relevant credit-related complaints against businesses which were, at the time of the events complained about, covered by a standard licence under the Consumer Credit Act 1974, or formerly authorised to carry on an activity by virtue of section 34(A) of that Act, in accordance with article 11 of the Regulated Activities Amendment Order;820 and10

   4. (d)

      certain complaints against designated credit reference agencies under the Small and Medium Sized Business (Credit Information) Regulations;10

2. (2)

   [deleted]820

   820
3. (3)

   the Voluntary Jurisdiction covers certain complaints against VJ participants, including in relation to events before they joined the Voluntary Jurisdiction.418

Relevant complaints covered by the Compulsory Jurisdiction comprise:

4 18

1. (1)

   relevant existing complaints referred to a former scheme before commencement and inherited by the Financial Ombudsman Service under the Ombudsman Transitional Order;

2. (2)

   relevant new complaints about events before commencement but referred to the Financial Ombudsman Service after commencement under the Ombudsman Transitional Order;

   820
3. (3)

   relevant transitional complaints referred to the Financial Ombudsman Service after the relevant commencement date under the Mortgages and General Insurance Complaints Transitional Order; 418

4. (4)

   relevant existing credit-related complaints referred to the Financial Ombudsman Service before 1 April 2014 which were formerly being dealt with under the Consumer Credit Jurisdiction and which are to be dealt with under the Compulsory Jurisdiction in accordance with article 11 of the Regulated Activities Amendment Order; and820

5. (5)

   relevant new credit-related complaints about events which took place before 1 April 2014 but referred to the Financial Ombudsman Service on or after 1 April 2014 which are to be dealt with under the Compulsory Jurisdiction in accordance with article 11 of the Regulated Activities Amendment Order.820

The Ombudsman Transitional Order requires the Financial Ombudsman Service to complete the handling of relevant existing complaints, in a significant number of respects, in accordance with the requirements of the relevant former scheme rather than in accordance with the requirements of this chapter.418

In this chapter, carrying on an activity includes:418

4 18

1. (1)

   418 offering, providing or failing to provide a service in relation to an activity;418

2. (2)

   administering or failing to administer a service in relation to an activity; and418

   3418
3. (3)

   the manner in which a respondent has administered its business, provided that the business is an activity subject to the Financial Ombudsman Service's jurisdiction.418

   418

In this chapter, ancillary banking services include, for example, the provision and operation of cash machines, foreign currency exchange, safe deposit boxes and account aggregation services (services where details of accounts held with different financial service providers can be accessed by a single password).418

4 18

The scope of the Financial Ombudsman Service's two 37jurisdictions depends on:26

2 6 3 7

1. (1)

   the type of activity to which the complaint relates (see DISP 2.3, DISP 2.4 and DISP 2.5);

2. (2)

   the place where the activity to which the complaint relates was carried on (see DISP 2.6);

3. (3)

   whether the complainant is eligible (see DISP 2.7); and

4. (4)

   whether the complaint was referred to the Financial Ombudsman Service in time (see DISP 2.8).

4 8The effect of section 234B of the Act is that where a person (a “successor”) has assumed a liability (including a contingent one) of another person who was, or would have been the respondent in respect of a complaint, the complaint may be dealt with by the Ombudsman as if the successor were the respondent.

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; or

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;

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

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.

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.

Complaints about acts or omissions include those7 in respect of activities for which the firm,931payment service provider7, 14electronic money issuer,15CBTL firm14or designated credit reference agency15 is responsible (including business of any appointed representative or agent7 for which the firm,931payment institution,15electronic money institution or designated credit reference agency15 has accepted responsibility).630

7 7 14 9 31 7 9 31

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.

The scope of the Voluntary Jurisdiction is wider than that of the Compulsory Jurisdiction, and so some activities are referred to in both jurisdictions.

1 24 1 24 4 27

DISP 2.5.1R (2)(a) is for those that are subject to the Compulsory Jurisdiction for regulated activities but are not covered by the Ombudsman Transitional Order or the Mortgage and General Insurance Complaints Transitional Order. It enables the Financial OmbudsmanScheme to cover complaints about earlier events relating to those activities before they became regulated activities.427

2 4 27

DISP 2.5.1R (2)(b) is for those that were members of one of the former schemes replaced by the Financial Ombudsman Service immediately before commencement. It enables the Financial Ombudsman Service5 to cover complaints that arise out of acts or omissions occurring after commencement for any activities which are not covered by the Compulsory Jurisdiction but that would have been covered by the relevant former scheme.427

5

6 DISP 2.5.1R (2)(l) includes complaints about the EEA end of 'one leg' payment services transactions, i.e. services provided from EEA establishments that are subject to the territorial jurisdiction of the Voluntary Jurisdiction (see DISP 2.6.4R (2)) that also involve a payment service provider located outside the EEA. It also includes complaints about payment services irrespective of the currency of the transaction.

This:519

1. (1)

   includes incoming EEA firms, incoming EEAauthorised payment institutions6, incoming EEA authorised electronic money institutions820 and incoming Treaty firms; but

2. (2)

   excludes complaints about business conducted in the United Kingdom on a services basis from an establishment outside the United Kingdom other than:13

   1. (a)

      complaints about collective portfolio management services provided by an EEA UCITS management company in managing a UCITS scheme; and 13

   2. (b)

      complaints about AIFM management functions provided by an incoming EEA AIFM managing an authorised AIF or a UK ELTIF other than a body corporate that is not a collective investment scheme.13

   97

A complaint can be dealt with under the Financial Ombudsman Service whether or not the complainant lives or is based in the United Kingdom.519

5 19

1 27

In determining whether an enterprise meets the tests for being a micro-enterprise, account should be taken of the enterprise's 'partner enterprises' or 'linked enterprises' (as those terms are defined in the Micro-enterprise Recommendation). For example, where a parent company holds a majority shareholding in a complainant, if the parent company does not meet the tests for being a micro-enterprise then neither will the complainant. [Note: Articles 1 and 3 to 7 of the Annex to the Micro-enterprise Recommendation].127

3

If a respondent is in doubt about the eligibility of a business, charity or trust, it should treat the complainant as if it were eligible. If the complaint is referred to the Financial Ombudsman Service, the Ombudsman will determine eligibility by reference to appropriate evidence, such as audited accounts or VAT returns.127

1 27 DISP 2.7.6R (5) and DISP 2.7.6R (6) include, for example, employees covered by a group permanent health policy taken out by an employer, which provides in the insurance contract that the policy was taken out for the benefit of the employee.

1 27In the Compulsory Jurisdiction, under the Ombudsman Transitional Order and the Mortgages and General Insurance Complaints Transitional Order, where a complainant:

1. (1)

   wishes to have a relevant new complaint or a relevant transitional complaint dealt with by the Ombudsman; and

2. (2)

   is not otherwise eligible; but

3. (3)

   would have been entitled to refer an equivalent complaint to the former scheme in question immediately before the relevant transitional order came into effect;

if the Ombudsman considers it appropriate, he may treat the complainant as an eligible complainant.

1 27In the Compulsory Jurisdiction, in relation to relevant new complaints under the Ombudsman Transitional Order and relevant transitional complaints under the Mortgages and General Insurance Complaints Transitional Order:

1. (1)

   where the former scheme in question is the Insurance Ombudsman Scheme, a complainant is not to be treated as an eligible complainant unless:

   1. (a)

      he is an individual; and

   2. (b)

      the relevant new complaint does not concern aspects of a policy relating to a business or trade carried on by him;

2. (2)

   where the former scheme in question is the GISC facility, a complainant is not to be treated as an eligible complainant unless:

   1. (a)

      he is an individual; and

   2. (b)

      he is acting otherwise than solely for the purposes of his business; and

3. (3)

   where the former scheme in question is the MCAS scheme, a complainant is not to be treated as an eligible complainant if:

   1. (a)

      the relevant transitional complaint does not relate to a breach of the Mortgage Code published by the Council of Mortgage Lenders;

   2. (b)

      the complaint concerns physical injury, illness, nervous shock or their consequences; or

   3. (c)

      the complainant is claiming a sum of money that exceeds £100,000.

1 9The six-month time limit is only triggered by a response which is a final response, redress determination or summary resolution communication512. The response 411must tell the complainant about the six-month time limit that the complainant has to refer a complaint to the Financial Ombudsman Service.

4 11 5 12 4 11

1 9An example of exceptional circumstances might be where the complainant has been or is incapacitated.

1 9If a complaint relates to the sale of an endowment policy for the purpose of achieving capital repayment of a mortgage, the receipt by the complainant of a letter which states that there is a risk (rather than a high risk) that the policy would not, at maturity, produce a sum large enough to repay the target amount is not, itself, sufficient to cause the three year time period in DISP 2.8.2R (2) to start to run.

The activities which were covered by the Compulsory Jurisdiction (at 6 April8 20166) were:23

3 24 3 24 26 26 6 7

1. (1) for firms:

   1. (a) regulated activities (other than auction regulated bidding);

   2. (b) payment services;

   3. [deleted]324

   4. (d) lending money secured by a charge on land;

   5. (e) lending money (excluding restricted credit where that is not a credit-related regulated activity);324

      3 24

   6. (f) paying money by a plastic card (excluding a store card where that is not a credit-related regulated activity);324

      3 24

   7. (g) providing ancillary banking services;

   8. 26(h) [deleted]5

      5

   9. (i) CBTL business;

      6
   23

2. (2) for payment service providers:

   1. (a) payment services;

   2. (b) credit-related regulated activities;324

      3 24

   or any ancillary activities, including advice, carried on by the payment service provider in connection with them.23

3. (3) for electronic money issuers:

   1. (a) issuance of electronic money;

      3 24

   2. (b) credit-related regulated activities;324

      3 24

   or any ancillary activities, including advice, carried on by the electronic money issuer in connection with them23;6

4. (4) for CBTL firms: CBTL business or any ancillary activities, including advice, carried on by the CBTL firm in connection with it.

   6

5. (5) for designated credit reference agencies:7

   1. (a) providing credit information under the Small and Medium Sized Business (Credit Information) Regulations; or7

   2. (b) any ancillary activities, including advice, carried on by the designated credit reference agency in connection with the activity in (a).7

1 20The activities which (at 13 December 20177 were regulated activities21 were, in accordance with section 22 of the Act (The classes of activity and categories of investment), any of the following activities specified in Part II of the Regulated Activities Order:

21 2 22 3 24 25 4 25 4 26 26 6 6 23

1. (1) accepting deposits (article 5);

2. (2) issuing electronic money (article 9B);

3. (3) effecting contracts of insurance (article 10(1));

4. (4) carrying out contracts of insurance (article 10(2));

5. (5) dealing in investments as principal (article 14);

6. (6) dealing in investments as agent (article 21);

7. (7) arranging (bringing about) deals in investments (article 25(1));

8. (8) making arrangements with a view to transactions in investments (article 25(2));

9. (9) arranging (bringing about) regulated mortgage contracts (article 25A(1));

10. (10) making arrangements with a view to regulated mortgage contracts (article 25A(2));

11. (11) arranging (bringing about) a home reversion plan (article 25B(1));

12. (12) making arrangements with a view to a home reversion plan (article 25B(2));

13. (13) arranging (bringing about) a home purchase plan (article 25C(1));

14. (14) making arrangements with a view to a home purchase plan (article 25C(2));

15. 21(14A) operating a multilateral trading facility (article 25D);

16. (14B) arranging (bringing about) a regulated sale and rent back agreement (article 25E(1));

17. (14C) making arrangements with a view to a regulated sale and rent back agreement (article 25E(2));

18. (14D) credit broking (article 36A);324

19. (14E) operating an electronic system in relation to lending (article 36H);324

20. (15) managing investments (article 37);

21. (16) assisting in the administration and performance of a contract of insurance (article 39A);

22. (16A) debt adjusting (article 39D(1) and (2));324

23. (16B) debt counselling (article 39E(1) and (2));324

24. (16C) debt collecting (article 39F(1) and (2));324

25. (16D) debt administration (article 39G(1) and (2));324

26. (17) safeguarding and administering investments (article 40);

27. (18) sending dematerialised instructions (article 45(1));

28. (19) causing dematerialised instructions to be sent (article 45(2));

29. 25 4
30. 25 4
31. 25 4
32. 25 4

33. (22A) managing a UCITS (article 51ZA);23

34. (22B) acting as a trustee or depositary of a UCITS (article 51ZB);23

35. (22C) managing an AIF (article 51ZC);23

36. (22D) acting as a trustee or depositary of an AIF (article 51ZD);23

37. (22E) establishing, operating or winding up a collective investment scheme (article 51ZE);23

38. (23) establishing, operating or winding up a stakeholder pension scheme (article 52(a));

39. (24) providing basic advice on a stakeholder product (article 52B);

40. (25) establishing, operating or winding up a personal pension scheme (article 52(b));

41. (26) advising on investments (except P2P agreements)8 (article 53(1)8);

42. (26A) advising on P2P agreements (article 53(2));8

43. (27) advising on regulated mortgage contracts (article 53A);

44. (28) advising on a home reversion plan (article 53B);

45. (28A) 6advising on a home purchase plan (article 53C);

    6

46. (29) 6advising on a regulated sale and rent back agreement (article 53D);

    21 6

47. (29A) advising on regulated credit agreements for the acquisition of land (article 53DA)

    6

48. (29B) advising on conversion or transfer of pension benefits (article 53E);5

49. (30) advising on syndicate participation at Lloyd's (article 56);

50. (31) managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's (article 57);

51. (32) arranging deals in contracts of insurance written at Lloyd's (article 58);

52. (32A) entering into a regulated credit agreement (article 60B(1));324

53. (32B) exercising, or having the right to exercise, rights and duties under a regulated credit agreement (article 60(B)(2);324

54. (32C) entering into a regulated consumer hire agreement (article 60N(1));324

55. (32D) exercising, or having the right to exercise rights and duties under a regulated consumer hire agreement (article 60N(2));324

56. (33) entering into a regulated mortgage contract (article 61(1));

57. (34) administering a regulated mortgage contract (article 61(2));

58. (35) entering into a home reversion plan (article 63B(1));

59. (36) administering a home reversion plan (article 63B(2));

60. (37) entering into a home purchase plan (article 63F(1));

61. (38) administering a home purchase plan (article 63F(2));

62. 21(38A) entering into a regulated sale and rent back agreement (article 63J(1));

63. (38B) administering a regulated sale and rent back agreement (article 63J(2));

64. (38C) meeting of repayment claims (article 63N(1)(a));23

65. (38D) managing dormant account funds (including the investment of such funds) (article 63N(1)(b));23

66. (38E) providing information in relation to a specified benchmark (article 63O(1)(a));23

67. (38F) administering a specified benchmark (article 63O(1)(b));23

68. (39) entering as provider into a funeral plan contract (article 59);

69. (40) agreeing to carry on a regulated activity (article 64);

70. (40A) providing credit information services (article 89A);324

71. (40B) providing credit references (article 89B);324

which is carried on by way of business and relates to a specified investment applicable to that activity or, in the case of (22) , (22A), (22B), (22C), (22D), (22E) 254and (23), is carried on in relation to property of any kind or, in the case of (40A) or (40B) relates to information about a person's financial standing.324

25 4 25 4