DISP 4.2 The standard terms

1. (1)

   For the purposes of the standard terms, a company, partnership, individual practitioner or other business, whether authorised or unauthorised, agreeing to participate in the Voluntary Jurisdiction of the Financial Ombudsman Service is known as a VJ participant.

2. (2)

   In consequence of the agreement by the VJ participant to participate in the Voluntary Jurisdiction, the standard terms fix the basis on which complaints relating to relevant acts or omissions of the VJ participant are to be dealt with and determined.

3. (3)

   Where the standard terms apply rules relating to the Compulsory Jurisdiction for the purposes of the Voluntary Jurisdiction, those are to be treated as part of the standard terms.

4. (4)

   A VJ participant is subject to the standard terms, which may be amended or supplemented with the approval of the FSA.

The rules and guidance contained in DISP 1 (Complaint handling procedures for firms) will apply to VJ participants for the purposes of the Voluntary Jurisdiction as if they were firms, with the exception of DISP 1.1.1 R (Application) and DISP 1.5 (Record keeping and reporting). DISP 1.2 (Internal complaint handling procedures: general requirements) applies in relation to complaints about activities of the VJ participant specified in DISP 2.6.9 R.

The rules and guidance contained in DISP 2 will apply for the purposes of the Voluntary Jurisdiction, with the exception of DISP 2.6.1 R - DISP 2.6.8 G.

By agreeing to participate in the Voluntary Jurisdiction, a VJ participant also agrees to complaints relating to activities covered by DISP 2.6.9 R being dealt with under DISP 2.6.12 R.

The rules and guidance contained in DISP 3 will apply to VJ participants for the purposes of the Voluntary Jurisdiction as if they were firms (except where their application to VJ participants is specifically excluded or necessarily inapplicable).

1. (1)

   None of the following is to be liable in damages for anything done or omitted in the discharge, or purported discharge, of any functions in connection with the Voluntary Jurisdiction:

   1. (a)

      FOS Ltd;

   2. (b)

      any member of its governing body;

   3. (c)

      any member of its staff;

   4. (d)

      any person acting as an Ombudsman for the purposes of the Financial Ombudsman Service.

2. (2)

   Paragraph (1) does not apply:

   1. (a)

      where the act or omission is shown to have been in bad faith; or

   2. (b)

      so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998.

If the Ombudsman determines a complaint under the Voluntary Jurisdiction in favour of the complainant, the determination may include:

1. (1)

   a "money award", that is, an award against the VJ participant of such amount as the Ombudsman considers fair compensation for financial loss or for loss or damage of a kind specified in DISP 3.9.2 G that has been suffered, or may be suffered, by the complainant;

2. (2)

   a direction that the VJ participant take such steps in relation to the complainant as the Ombudsman considers just and appropriate (whether or not a court could order those steps to be taken).

The Ombudsman's determination, if accepted by the complainant within the time limit specified by the Ombudsman, will be binding on the VJ participant and final, and may be enforced in court by the complainant.

A VJ participant may not withdraw from the Voluntary Jurisdiction of the Financial Ombudsman Service unless the VJ participant:

1. (1)

   has submitted a written plan to FOS Ltd setting out its proposals for:

   1. (a)

      notifying its existing customers of its intention to withdraw from the Voluntary Jurisdiction; and

   2. (b)

      the handling of complaints against it prior to its withdrawal from the Voluntary Jurisdiction; and

2. (2)

   the plan has been approved in writing by FOS Ltd; and

3. (3)

   the VJ participant has paid the general levy for the year in which it withdraws and any other fees payable; and

4. (4)

   FOS Ltd has agreed in writing the date on which the VJ participant may withdraw from the Voluntary Jurisdiction (which date is not to be earlier than six months from the date of approval of the plan).

The following rules in FEES 5115 apply (subject to DISP 4.2.13 R) to VJ participants as part of their agreement to be subject to the Voluntary Jurisdiction as if they were authorised firms, but subject to the variations stated in each case.

1. (1)

   115FEES 5.3.6 R115 (general levy) subject to substituting the words 'Voluntary Jurisdiction' for 'Compulsory Jurisdiction' and substituting the words 'FOS Ltd' for 'the FSA';

2. (2)

   115FEES 5.3.8 R115 (calculation of general levy);

3. (3)

   115FEES 5.4.1 R115 (information) subject to substituting the words 'FOS Ltd' for 'FSA';

4. (4)

   115FEES 5.5.1 R115 (standard case fee);

5. (5)

   115FEES 5.5.6 R115 (special case fee);

6. (6)

   115FEES 5.6.5 R115 subject to substituting 'to FOS Ltd' for 'to the FSA' and 115FEES 5.6.6 R115 (supplementary levy for establishment costs) subject to substituting 'Part 4' for 'Part 2';

7. (7)

   115FEES 5.7.1 R115 subject to substituting 'to FOS Ltd' for 'to the FSA' and 'by FOS Ltd' for 'by the FSA', 115FEES 5.7.2 R115 to 115FEES 5.7.3 R115, 115FEES 2.2.2 G115, 115FEES 2.2.1 R115, 115FEES 2.3.1 R115 and 115FEES 2.3.2 R115 (payment).

8. (8)

   115FEES 5.8.1 R115 (joining the Financial Ombudsman Service) and FEES 4.2.6 R (1)(b)115;

   115
9. (9)

   115FEES 5 Annex 1 R115 (fees payable).

A VJ participant which joins the Voluntary Jurisdiction before the end of the financial year in which the commencement day falls must pay to FOS Ltd the special case fee specified in 115FEES 5 Annex 1 R115 for 115FEES 5.5.10 R115 in respect of each chargeable case falling within the Voluntary Jurisdiction and closed under the Financial Ombudsman Service before 31 March 2002, unless it was, immediately before the commencement day, a member of a former scheme, which was paid an agreed sum to the FOS Ltd in respect of the handling of complaints against its former members up to 31 March 2002.