Financial Services and Markets Act 2000, section 228

Determination under the compulsory jurisdiction

Part XVI The Ombudsman Scheme

(1)F1750This section applies only in relation to the compulsory jurisdiction ....

(2)A complaint is to be determined by reference to what is, in the opinion of the ombudsman, fair and reasonable in all the circumstances of the case.

(3)When the ombudsman has determined a complaint he must give a written statement of his determination to the respondent and to the complainant.

(4)The statement must—

(a)give the ombudsman’s reasons for his determination;

(b)be signed by him; and

(c)F1751require the complainant to notify him ..., before a date specified in the statement, whether he accepts or rejects the determination.

(5)If the complainant notifies the ombudsman that he accepts the determination, it is binding on the respondent and the complainant and final.

(6)If, by the specified date, the complainant has not notified the ombudsman of his acceptance or rejection of the determination he is to be treated as having rejected it.

[F1752 (6A)But the complainant is not to be treated as having rejected the determination by virtue of subsection (6) if—

(a)the complainant notifies the ombudsman after the specified date of the complainant's acceptance of the determination,

(b)the complainant has not previously notified the ombudsman of the complainant's rejection of the determination, and

(c)the ombudsman is satisfied that such conditions as may be prescribed by rules made by the scheme operator for the purposes of this section are satisfied.F1752]

(7)The ombudsman must notify the respondent of the outcome.

[F1753 (7A)Where a determination is rejected by virtue of subsection (6), the notification under subsection (7) must contain a general description of the effect of subsection (6A).F1753]

(8)A copy of the determination on which appears a certificate signed by an ombudsman is evidence (or in Scotland sufficient evidence) that the determination was made under the scheme.

(9)Such a certificate purporting to be signed by an ombudsman is to be taken to have been duly signed unless the contrary is shown.

Read section 228 in the full Act → Definitions (4) Cases (52)

Definitions used in section 228

Specified

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

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

“prescribed” (where not otherwise defined) means prescribed in regulations made by the Treasury;

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
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

Cases considering section 228 (52)

Axa France Iard SA & Anor v Santander Cards UK Limited & Anor

[2026] EWCA Civ 1185 · 15 September 2026Interprets

The court treated an accepted ombudsman determination as creating a binding regulatory obligation, not an action capable of establishing the civil liability required for contribution. (see paras [115]; [118]) The court treated the fair-and-reasonable criterion as permitting an ombudsman to decide a complaint otherwise than by applying legal rights. That feature supported the conclusion that regulatory redress was not a civil liability to the complainant. (see paras [115]; [118])

Linear Investments Limited v Financial Ombudsman Service Limited

[2025] EWCA Civ 1369 · 29 October 2025Defines

Defines the Ombudsman’s task as determining a complaint by reference to what, in the Ombudsman’s opinion, is fair and reasonable in all the circumstances. (see para [60])

Options UK Personal Pensions LLP v Financial Ombudsman Service Limited

[2024] EWCA Civ 541 · 20 May 2024Interprets

The compulsory jurisdiction requires an ombudsman to determine a complaint according to what is, in the ombudsman's opinion, fair and reasonable in all the circumstances. This jurisdiction is wider than adjudication according to common law or actionable regulatory duties. (see paras [51]; [73]–[75])

32 more judgments, and what each says about section 228, are in the case-law panel in the full Act.

Explanatory note

447.The ombudsman will make a decision about the complaint on the basis of what he considers is fair and reasonable in the circumstances. The scheme operator has the power under paragraph 14 of Schedule 17 to specify the matters that can be taken into account when determining what is fair and reasonable. The ombudsman must make a written statement of his reasons for the decision, and must also require the claimant to accept or reject the decision by a specified date. If the complainant accepts the ombudsman’s decision, then it is binding on both the complainant and the respondent.

All the explanatory notes for the Act

Amendments and notes

11 notes from legislation.gov.uk

Amendments

  1. F1750Words in s. 228(1) omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(7)
  2. F1751Words in s. 228(4)(c) omitted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by virtue of Financial Services Act 2012 (c. 21), s. 122(3), Sch. 11 para. 4(2) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.
  3. F1752S. 228(6A) 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. 4(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.
  4. F1753S. 228(7A) 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. 4(4) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Modifications

  1. C973S. 228 applied (1.12.2001) by S.I. 2001/2326, arts. 1(1)(b), 6(11), 7(1); S.I. 2001/3538, art. 2(1)
  2. C974Ss. 228-232 applied (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), 5
  3. C975S. 228 applied (with modifications) (E.W.S.) (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 72(3)
  4. C976Ss. 228-230A applied (with modifications) (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), 9
  5. C977S. 228(2) excluded (1.12.2001) by S.I. 2001/2326, arts. 1(1)(b), 6(1)(a); S.I. 2001/3538, art. 2(1)
  6. C978S. 228(2) applied (with modifications) (E.W.S.) (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 73(3)-(5)
  7. C979S. 228(4)(c)(5)-(7) excluded (1.12.2001) by S.I. 2001/2326, arts. 1(1)(b), 6(7)(8)(9); S.I. 2001/3538, art. 2(1)