The FCA must take such steps as are necessary to ensure that the body corporate established by the Financial Services Authority under this Schedule as originally enacted is, at all times, capable of exercising the functions conferred on the scheme operator by or under this Act.

The FCA must exercise any function falling within sub-paragraph (3) in a way which is consistent with enabling the scheme operator, at all times, to qualify as an ADR entity and to meet the F42requirements in Schedule 3 to the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015.

The chairman and other members of the board must be persons appointed, and liable to removal from office, by the F4FCA (acting, in the case of the chairman, with the approval of the Treasury).

But the terms of their appointment (and in particular those governing removal from office) must be such as to secure their independence from the F4FCA in the operation of the scheme.

The function of making voluntary jurisdiction rules under section 227 F24... and the functions conferred by paragraphs 4, 5, 7, 9 F5, 9A or 14 may be exercised only by the board.

The scheme operator and the FCA must each take such steps as it considers appropriate to co-operate with the other in the exercise of their functions under this Part of this Act.

The scheme operator and the FCA must prepare and maintain a memorandum describing how they intend to comply with sub-paragraph (1).

The scheme operator must ensure that the memorandum as currently in force is published in the way appearing to the scheme operator to be best calculated to bring it to the attention of the public.

The scheme operator must appoint and maintain a panel of persons, appearing to it to have appropriate qualifications and experience, to act as ombudsmen for the purposes of the scheme.

The scheme operator must appoint one member of the panel to act as Chief Ombudsman.

The Chief Ombudsman is to be appointed on such terms (including terms as to the duration and termination of his appointment) as the scheme operator considers appropriate.

The scheme operator is not to be regarded as exercising functions on behalf of the Crown.

The scheme operator’s F7... officers and staff are not to be regarded as Crown servants.

Appointment as Chief Ombudsman or to the panel or as a deputy ombudsman does not confer the status of Crown servant.

Each report must distinguish between functions in relation to the scheme’s compulsory jurisdiction F25... and functions in relation to its voluntary jurisdiction.

Each report must also comply with any requirements specified in rules made by the F8FCA.

The scheme operator must publish each report in the way it considers appropriate.

Compliance with any requirement under sub-paragraph (5)(a) or (b) is enforceable by injunction or, in Scotland, an order for specific performance under section 45 of the Court of Session Act 1988.

Proceedings under sub-paragraph (6) may be brought only by the Treasury.

The scheme operator must send a copy of its annual accounts to the Comptroller and Auditor General as soon as is reasonably practicable.

The Treasury must lay the copy of the certified accounts and the report before Parliament.

The scheme operator must send a copy of the certified accounts and the report to the FCA.

Except as provided by paragraph 7(5), the scheme operator is exempt from the requirements of Part 16 of the Companies Act 2006 (audit), and its balance sheet must contain a statement to that effect.

In this paragraph “annual accounts” has the meaning given by section 471 of the Companies Act 2006.

The scheme operator must, before the start of each of its financial years, adopt an annual budget which has been approved by the F13FCA.

The scheme operator may, with the approval of the F13FCA, vary the budget for a financial year at any time after its adoption.

The scheme operator must in respect of each of its financial years prepare an annual plan.

The plan must be prepared before the start of the financial year.

An annual plan in respect of a financial year must make provision about the use of the resources of the scheme operator.

The plan may include material relating to periods longer than the financial year in question.

Before preparing an annual plan, the scheme operator must consult such persons (if any) as the scheme operator considers appropriate.

The scheme operator must publish each annual plan in the way it considers appropriate.

No person is to be liable in damages for anything done or omitted in the discharge, or purported discharge, of any functions under this Act in relation to the compulsory jurisdiction F27....

The rules may provide that an ombudsman may extend that time limit in specified circumstances.

The F15FCA may make rules providing that a complaint is not to be entertained (except in specified circumstances) if the complainant has not previously communicated its substance to the respondent and given him a reasonable opportunity to deal with it.

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.

The scheme operator must exercise the function of making scheme rules in a way which is consistent with enabling the scheme operator to qualify as an ADR entity and to meet the F43requirements in Schedule 3 to the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015.

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.

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.

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

The consent of the F20FCA is required before any scheme rules may be made.

Scheme rules may require a respondent F44or other persons of a specified description to pay to the scheme operator such fees as may be specified in the rules.

The reference in sub-paragraph (1) to persons of a specified description is a reference to such descriptions of persons as may be specified in regulations made by the Treasury.

The power conferred by sub-paragraph (3) to specify descriptions of persons may not be exercised so as to provide for eligible complainants to fall within a specified description of persons.

The reference in sub-paragraph (4) to “eligible complainants” is a reference to complainants who are eligible in relation to the compulsory or voluntary jurisdiction of the ombudsman scheme (see section 226(6) and 227(7)).

Before making regulations under sub-paragraph (3) the Treasury must consult the scheme operator.

Complaints are to be dealt with and determined under the voluntary jurisdiction on standard terms fixed by the scheme operator with the approval of the F23FCA.

Different standard terms may be fixed with respect to different matters or in relation to different cases.

The scheme operator may not vary any of the standard terms or add or remove terms without the approval of the F23FCA.

Such arrangements require the approval of the F21FCA.

If the scheme operator makes voluntary jurisdiction rules, it must give a copy to the F22FCA without delay.

If the scheme operator revokes any such rules, it must give written notice to the F22FCA without delay.

The power to make voluntary jurisdiction rules is exercisable in writing.

Immediately after making voluntary jurisdiction rules, the scheme operator must arrange for them to be printed and made available to the public.

The scheme operator may charge a reasonable fee for providing a person with a copy of any voluntary jurisdiction rules.

A certificate purporting to be signed as mentioned in sub-paragraph (1) is to be taken to have been duly signed unless the contrary is shown.

If the scheme operator proposes to make voluntary jurisdiction 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 the public.

Before making any voluntary jurisdiction rules, the scheme operator must have regard to any representations made to it in accordance with sub-paragraph (2)(b).

If voluntary jurisdiction rules made by the scheme operator differ from the draft published under sub-paragraph (1) in a way which the scheme operator considers significant, the scheme operator must publish a statement of the difference.