Financial Services and Markets Act 2000, Schedule 17, paragraph 14

The scheme operator’s rules

SCHEDULE 17 The Ombudsman Scheme

14 (1) The scheme operator must make rules, to be known as “scheme rules”, which are to set out the procedure for reference of complaints and for their investigation, consideration and determination by an ombudsman.

(2) Scheme rules may, among other things—

(a) specify matters which are to be taken into account in determining whether an act or omission was fair and reasonable;

(b) provide that a complaint may, in specified circumstances, be dismissed without consideration of its merits;

(c) provide for the reference of a complaint, in specified circumstances and with the consent of the complainant, to another body with a view to its being determined by that body instead of by an ombudsman;

(d) make provision as to the evidence which may be required or admitted, the extent to which it should be oral or written and the consequences of a person’s failure to produce any information or document which he has been required (under section 231 or otherwise) to produce;

(e) allow an ombudsman to fix time limits for any aspect of the proceedings and to extend a time limit;

(f) provide for certain things in relation to the reference, investigation or consideration (but not determination) of a complaint to be done by a member of the scheme operator’s staff instead of by an ombudsman;

[F3821 (fa) allow the correction of any clerical mistake in the written statement of a determination made by an ombudsman;

(fb) provide that any irregularity arising from a failure to comply with any provisions of the scheme rules does not of itself render a determination void;F3821]

(g) make different provision in relation to different kinds of complaint.

(3) The circumstances specified under sub-paragraph (2)(b) may include the following—

(a) the ombudsman considers the complaint frivolous or vexatious;

(b) legal proceedings have been brought concerning the subject-matter of the complaint and the ombudsman considers that the complaint is best dealt with in those proceedings; or

(c) the ombudsman is satisfied that there are other compelling reasons why it is inappropriate for the complaint to be dealt with under the ombudsman scheme.

F3822 (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) If the scheme operator proposes to make any scheme rules it must publish a draft of the proposed rules in the way appearing to it to be best calculated to bring them to the attention of persons appearing to it to be likely to be affected.

(5) The draft must be accompanied by a statement that representations about the proposals may be made to the scheme operator within a time specified in the statement.

(6) Before making the proposed scheme rules, the scheme operator must have regard to any representations made to it under sub-paragraph (5).

(7) The consent of the [F3823FCAF3823] is required before any scheme rules may be made.

Read Schedule 17, paragraph 14 in the full Act → Definitions (7) Cases (13)

Definitions used in Schedule 17, paragraph 14

the scheme operator

“the scheme operator” has the meaning given in section 225(2);

Defined in s.417(1) · see it in the full Act
rule

“rule” means a rule made by the FCA or the PRA under this Act;

Defined in s.417(1) · see it in the full Act
ombudsman

“ombudsman” means a person who is a member of the panel; and

Defined in Sch.17 para.1 · see it in the full Act
Specified

(5) “Specified” means specified in an order made by the Treasury.

Defined in s.22(5) · see it in the full Act
documents

“documents” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form , or in a form from which it can readily be produced in visible and legible form ;

Defined in s.417(1) · see it in the full Act
the ombudsman scheme

(3) The scheme is to be operated under a name chosen by the scheme operator but is referred to in this Act as “the ombudsman scheme”.

Defined in s.225(3) · see it in the full Act

“the ombudsman scheme” has the meaning given in section 225(3);

Defined in s.417(1) · see it in the full Act
the FCA

(2) The Financial Conduct Authority is in this Act referred to as “the FCA”.

Defined in s.1A(2) · see it in the full Act

“the FCA” means the Financial Conduct Authority;

Defined in s.417(1) · see it in the full Act

Cases considering Schedule 17, paragraph 14 (13)

Financial Ombudsman Service v Heather Moor & Edgecomb Ltd (Rev 1)

[2008] EWCA Civ 643 · 11 June 2008Interprets

Requires the scheme operator to make rules governing reference, investigation, consideration and determination of complaints. It provides the statutory basis for the delegation analysis. (see paras [6], [28]) The words investigation, consideration and determination describe the procedure following presentation of a complaint, including summary dismissal. (see para [28]) Confirms that scheme rules may provide for complaints to be dismissed without consideration of their merits in specified circumstances. (see paras [6], [28]) Cited only. Authorises scheme rules allowing staff to perform functions relating to reference, investigation or consideration of complaints. The power includes delegation of summary dismissal, but excludes merits determination. (see paras [7], [28]) Confirms that the specified dismissal circumstances may include grounds which do not necessarily determine the merits of the complaint. (see para [28]) Supports the distinction between summary dismissal and merits determination where a complaint is frivolous or vexatious. (see para [28]) Cited as an example of dismissal without merits consideration where legal proceedings concern the subject matter. (see para [28]) Cited as an example of dismissal where other compelling reasons make use of the ombudsman scheme inappropriate. (see para [28])

Berkeley Burke Sipp Administration LLP v Wayne Charlton & Anor

[2017] EWHC 2396 (Comm) · 3 October 2017Interprets

Interprets the statutory framework as imposing a duty on the Financial Ombudsman Service to consider properly brought complaints, which includes an implicit power to reconsider a complaint in the circumstances described (see paras [10]-[11]).

Aviva Life & Pensions (UK) Ltd, R (On the Application Of) v McCulloch & Anor

[2017] EWHC 352 (Admin) · 27 February 2017Limits

Paragraph 14 of Schedule 17 is identified as part of the statutory source of the DISP rules, including rules about matters relevant to fairness and reasonableness (see para [34]). Paragraph 14(2)(a) permits scheme rules to specify matters relevant to deciding whether conduct was fair and reasonable. It does not displace the wider evaluative enquiry required by section 228(2) (see paras [34], [58]-[60]).

What each judgment says about Schedule 17, paragraph 14 is in the case-law panel in the full Act.

Explanatory note

858.This requires the scheme operator to make other procedural rules for the compulsory jurisdiction.  It provides, in particular, for rules to be made which allow an ombudsman to dismiss a complaint without consideration of its merits, for example where he deems the complaint to be frivolous or vexatious, and for the early stages of the handling of a complaint, for example a conciliation stage, to be handled by a member of the scheme operator’s staff other than an ombudsman.

All the explanatory notes for the Act

Amendments and notes

11 notes from legislation.gov.uk

Amendments

  1. F3821Sch. 17 para. 14(2)(fa)(fb) inserted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 11 para. 25(a) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.
  2. F3822Sch. 17 para. 14(3A) omitted (6.4.2026) by virtue of Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(1), Sch. 27 para. 5(c); S.I. 2026/284, regs. 1(2), 2(1)(5)
  3. F3823Word in Sch. 17 para. 14(7) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 11 para. 25(b) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Modifications

  1. C1722Sch. 17 para. 14 amended (19.7.2001 for specified purposes otherwise 1.12.2001) by S.I. 2001/2326, arts. 1(1), 5; S.I. 2001/3538, art. 2(1)
  2. C1723Sch. 17 para. 14 modified (31.10.2004 for certain purposes and 14.1.2005 otherwise) by The Financial Services and Markets Act 2000 (Transitional Provisions) (Complaints Relating to General Insurance and Mortgages) Order 2004 (S.I. 2004/454), arts. 1(2), 4
  3. C1724Sch. 17 para. 14 modified by The Payment Services Regulations 2009 (S.I. 2009/209), Sch. 7 para. 3(2) (as inserted (1.10.2009 for certain purposes and 1.11.2009 otherwise) by S.I. 2009/2475, reg. 13)
  4. C1725Sch. 17 para. 14 modified (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 7 para. 3(2) (with reg. 3)
  5. C1726Sch. 17 para. 14 modified by S.I. 2011/99, Sch. 5 para. 3(2) (as inserted (13.1.2018) by The Payment Systems and Services and Electronic Money (Miscellaneous Amendments) Regulations 2017 (S.I. 2017/1173), regs. 1(4), 5(d))
  6. C1727Sch. 17 para. 14 modified (28.1.2021 for specified purposes, 30.7.2022 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2021 (S.I. 2021/90), arts. 1(2)(3), 8
  7. C1728Sch. 17 para. 14(4)(5) amended (19.7.2001) by S.I. 2001/2326, arts. 1(1)(a), 16(a); S.I. 2001/3538, art. 2(1)
  8. C1729Sch. 17 para. 14(4)-6) excluded by S.I. 2004/454, art. 12(2) (as inserted (15.7.2004) by The Financial Services and Markets Act 2000 (Transitional Provisions) (Complaints Relating to General Insurance and Mortgages) (Amendment) Order 2004 (S.I. 2004/1609), art. 6)