§ Mr. FlightTo ask the Chancellor of the Exchequer how many firms have paid an administrative fee for Personal Investment Authority Ombudsman investigations into complaints brought by clients regarding financial advice in the last financial year; on how many occasions fees were levied; how much money was raised in total; in what percentage of cases the firm was found to be at fault; and what was the total cost to the FSA of investigating those cases. [9254]
§ Ruth KellyIn the year ending 31 March 2001, the Personal Investment Authority Ombudsman Bureau (PIAOB) received 17,255 new cases against PIA regulated firms, each of which attracted a £500 case fee. 13,000 cases were resolved during this period, of which 46 per cent. were resolved by voluntary agreement between each side, through conciliation or mediation, and 22 per cent. of which were found against the firm.
The total cost to the PIAOB of dealing with these 13,000 complaints was £9.5 million. This was funded by £6.5 million in case fees; £2.8 million direct from the PIA; and the £0.2 million balance from other income (mainly sale of publications). The PIAOB investigates complaints itself and so there was no cost to the FSA in investigating these cases.