(1) F1761 The scheme operator may by rules (“costs rules”) provide for an ombudsman to have power, on determining a complaint under the compulsory jurisdiction ..., to award costs in accordance with the provisions of the rules.
(2)Costs rules require the approval of the [F1762FCAF1762] .
(3)Costs rules may not provide for the making of an award against the complainant in respect of the respondent’s costs.
(4)But they may provide for the making of an award against the complainant in favour of the scheme operator, for the purpose of providing a contribution to resources deployed in dealing with the complaint, if in the opinion of the ombudsman—
(a)the complainant’s conduct was improper or unreasonable; or
(b)the complainant was responsible for an unreasonable delay.
(5)Costs rules may authorise an ombudsman making an award in accordance with the rules to order that the amount payable under the award bears interest at a rate and as from a date specified in the order.
(6)An amount due under an award made in favour of the scheme operator is recoverable as a debt due to the scheme operator.
(7)F1763Any other award made against the respondent is to be treated as a money award for the purposes of paragraph 16 of Schedule 17 ....
449.This section allows the scheme operator to make rules concerning the costs which can be awarded by the ombudsman. These rules are subject to certain constraints. Where a complaint is settled in favour of the complainant, the rules can allow the firm concerned to be required to meet the costs of both the complainant and the scheme operator. A complainant could only ever be required to meet the costs of the scheme, and then only if the scheme operator had made rules to allow for such awards and the ombudsman believed that the complainant’s conduct has been improper or unreasonable, or they had been responsible for an unreasonable delay. The section also makes provision for recovery of costs by the scheme operator.