The Financial Ombudsman Service (FOS) has confirmed it will collect £24.5m from the industry for the coming year, after the body predicted there would not be a meaningful rise in complaints in the period.
The FOS stuck to its previous proposals to increase its fees for 2016-17 by 5% - from £23.3m to £24.5m - effectively freezing last year's levy but taking into account £1.2m for the transition of consumer credit.
The organisation will also keep the number of free cases at 25 per firm and freeze the standard case fee payable thereafter at £550, it confirmed in its business plan, published on 21 March.
It expects to have a total operating income of £226.5m in 2016-17, resulting in an operating deficit of £38.5m after deducting projected costs - compared with last year's budgeted deficit of £46.4m.
Levelling off
The FOS expects the overall number of complaints to remain stable at around 306,000 new cases, but believes the mix of the financial products involved in those cases will fluctuate. This is broadly in line with the 329,500 cases budgeted in 2015-16.
The body has, for instance, revised up the number of cases it expects to receive involving packaged bank accounts from 15,000 to 30,000. It is also anticipating more complaints about debt issues such as loans and credit cards.
Of the new cases the FOS is set to receive, it estimates about 5% will relate to investments and pensions. This is the same percentage as last year and bucks a previously anticipated rising trend in complaints resulting from the government's pension freedom reforms.
Figures published in October indicated complaints about pension products and advice had been increasing in the year following the reforms, which gave all direct contribution savers unfettered access to their pensions, and were on course to top the previous year's numbers.
But the FOS said: "It's been suggested that the so-called 'pension freedom' changes introduced in April 2015 might lead to more complaints.
"Last year we saw a relatively small number of people with complaints relating to delays and administrative problems on the part of pension providers, as well as issues around getting advice.
"And so, based on current trends, we expect to see the number of complaints overall about pensions and investments remaining at a similar level to the previous few years."
New rules
The FOS also concluded new rules around consumer complaints were unlikely to affect the number of complaints brought to the service.
The rules published in July saw firms mandated by the Financial Conduct Authority (FCA) to send consumers a 'summary resolution communication' within three days when their complaint is handled.
The FOS said: "Respondents were broadly split on the impact of the FCA's new complaint handling rules and the summary resolution communication. Some anticipated no material impact, noting that such cases should have already been resolved.
"Others predicted an increase in referrals, though not of large proportions. Several stakeholders requested the opportunity for further discussions on the impact of these changes, which we will take forward with the businesses concerned."
The FOS pledged to make further efficiency savings in its business and to work towards "minimising formality and process" while ensuring fairness and consistency when handling complaints.
It added it would also review its case fee arrangements in light of both the growing number of cases where both sides agree on an outcome without a formal verdict, and the regulator's new rules on complaints handling.
