DISP 3.8 Determination by the Ombudsman
Opinion as to fairness and reasonableness
- (1)
The Ombudsman will determine a complaint by reference to what is, in his opinion, fair and reasonable in all the circumstances of the case.
- (2)
In considering what is fair and reasonable in all the circumstances of the case, the Ombudsman will take into account the relevant law, regulations, regulators' rules and guidance and standards, relevant codes of practice and, where appropriate, what he considers to have been good industry practice at the relevant time.
In determining, in relation to a relevant new complaint, what is fair and reasonable in all the circumstances of the case and what amount (if any) constitutes fair compensation, for the purposes of section 229(2)(a) of the Act (money awards), the Ombudsman is required, under article 7(2) of the Ombudsman Transitional Order, to take into account:
- (1)
what determination the former Ombudsman might have been expected to reach, and
- (2)
what amount (if any) might have been expected to be awarded by way of compensation;
in relation to an equivalent complaint dealt with under the former scheme in question immediately before commencement.
1In determining, in relation to a relevant transitional complaint, what is fair and reasonable in all circumstances of the case and what amount (if any) constitutes fair compensation for the purposes of section 229(2)(a) of the Act, the Ombudsman is required, under article 5(2) of the Mortgage and General Insurance Complaints Transitional Order, to take into account what determination might have been expected to be made under the former scheme in question and what amount (if any) might have been expected to have been awarded or recommended by way of compensation under that scheme, in relation to an equivalent complaint dealt with under the former scheme immediately before the relevant commencement date.
The Ombudsman's determination
The Ombudsman's determination will include the following stages:
- (1)
When a complaint has been determined, the Ombudsman will give both the complainant and the firm a signed written statement of the determination, stating the reasons for it.
- (2)
The statement will invite the complainant to notify the Ombudsman in writing before the date specified in the statement whether he accepts or rejects the determination.
- (3)
If the complainant notifies the Ombudsman that he accepts the determination within the time limit set, it is final and binding on both the complainant and the firm.
- (4)
If the complainant either rejects the determination or does not notify the Ombudsman by the specified date that he accepts the determination, the complainant will be treated as having rejected the determination, and the firm will not be bound by it.
- (5)
The Ombudsman must notify the firm of the complainant's response (or lack of response).