Part XVI The Ombudsman Scheme

The scheme

226 Compulsory jurisdiction.

(1)

A complaint which relates to an act or omission of a person (“the respondent”) in carrying on an activity to which compulsory jurisdiction rules apply is to be dealt with under the ombudsman scheme if the conditions mentioned in subsection (2) are satisfied.

(2)

The conditions are that—

(a)

the complainant is eligible and wishes to have the complaint dealt with under the scheme;

(b)

the respondent was an authorised person F1or an electronic money issuer within the meaning of the Electronic Money Regulations 2011 F2, or a payment service provider within the meaning of the Payment Services Regulations F32017, at the time of the act or omission to which the complaint relates; and

(c)

the act or omission to which the complaint relates occurred at a time when compulsory jurisdiction rules were in force in relation to the activity in question.

(3)

“Compulsory jurisdiction rules” means rules—

(a)

made by the F4FCA for the purposes of this section; and

(b)

specifying the activities to which they apply.

(4)

Only activities which are regulated activities, or which could be made regulated activities by an order under section 22, may be specified.

(5)

Activities may be specified by reference to specified categories (however described).

F5(5A)

If the FCA specifies activities which are account information services provided by authorised payment institutions or EEA authorised payment institutions, the FCA must specify to the same extent account information services provided by registered account information service providers or, as the case may be, EEA registered account information service providers.

(5B)

Expressions used in subsection (5A) and in the Payments Services Regulations 2017 have the same meaning in that subsection as they do in those Regulations.

(6)

A complainant is eligible, in relation to the compulsory jurisdiction of the ombudsman scheme, if he falls within a class of person specified in the rules as eligible.

(7)

The rules—

(a)

may include provision for persons other than individuals to be eligible; but

(b)

may not provide for authorised persons to be eligible except in specified circumstances or in relation to complaints of a specified kind.

F6(7A)

The rules must provide that a person within subsection (7B) is eligible in relation to a complaint to which subsection (7C) applies.

(7B)

A person is within this subsection if he or she has been identified by a respondent, in carrying on an activity to which the rules apply, as—

(a)

a politically exposed person;

(b)

a family member of a politically exposed person; or

(c)

a known close associate of a politically exposed person.

(7C)

This subsection applies to a complaint—

(a)

that the complainant has been incorrectly identified as a person within subsection (7B); or

(b)

relating to an act or omission of the respondent in consequence of the identification of the complainant as a person within subsection (7B).

(7D)

In subsection (7B), “politically exposed person”, “family member” and “known close associate” have the meanings given in regulation 35(12) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

(8)

The jurisdiction of the scheme which results from this section is referred to in this Act as the “compulsory jurisdiction”.