The Financial Services and Markets Act 2000 (Transitional Provisions) (Ombudsman Scheme and Complaints Scheme) Order 2001

Explanatory Note

(This note is not part of the Order)

This Order makes transitional provisions in connection with the coming into force of the Financial Services and Markets Act 2000 (“the Act”).

Articles 2 to 17 make transitional provision in relation to Part XVI of the Act, which provides for the establishment of an ombudsman scheme (the “new scheme”). The Order provides for certain complaints relating to acts or omissions occurring before the commencement of Part XVI, which fell (or would have fallen) within the scope of one of the “former schemes” listed in article 1(2), to be dealt with under the new scheme, subject to the modifications set out in articles 4 to 7. Articles 8 to 10 make provision for appeals against certain determinations made before commencement under the IMRO scheme, the SFA scheme and the building societies scheme (as defined in article 1(2)). Article 16 provides that where consultation on rules for the new scheme was undertaken before 19th July 2001, that consultation is to be taken to satisfy the requirements in Schedule 17 to the Act to the extent that it would have done so if undertaken after that date. Article 17 provides for liabilities of the former schemes arising from the handling of complaints to become liabilities of the operator of the new scheme.

Articles 18 to 20 are concerned with complaints relating to certain matters occurring before the coming into force of section 19 of the Act (the key provision which contains the “general prohibition” on carrying on regulated activities unless authorised or exempt). Article 18 empowers the Financial Services Authority to make arrangements for the investigation of such complaints. It supplements the Authority’s duty, under paragraphs 7 and 8 of Schedule 1 to the Act, to make arrangements for the investigation of complaints relating to the exercise of (or failure to exercise) its functions under the Act (other than its legislative functions as defined in paragraph 1(2) of Schedule 1). Article 19 makes provision about anticipatory consultation with respect to any “transitional complaints scheme” made under article 18. Article 20 confers exemption from liability in damages on those investigating “transitional complaints” under article 18, by analogy with the exemption conferred by paragraph 19(2) of Schedule 1 to the Act on investigators appointed under that Schedule.

Copies of the documents in which the former schemes are comprised may be obtained from the Financial Ombudsman Service at South Quay Plaza, 183 Marsh Wall, London E14 9SR, except for—

• the FSA scheme, particulars of which may be obtained from the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS; and

• the Personal Insurance Arbitration Service, particulars of which may be obtained from the Chartered Institute of Arbitrators, International Arbitration Centre, 12 Bloomsbury Square, London WC1A 2LP.