Category: Dispute resolution · Reviewed by Simon Temme, Account Executive · Last reviewed 2026-06-11
FOS jurisdiction is the legal and regulatory scope, defined in DISP 2 of the FCA Handbook, within which the Financial Ombudsman Service can determine complaints — covering Compulsory and Voluntary Jurisdictions, eligible complainant categories, scope of activities and territorial limits.
Category: Dispute resolution Also known as: Financial Ombudsman Service jurisdiction, DISP 2 jurisdiction, Compulsory Jurisdiction, Voluntary Jurisdiction Related concepts: Financial Ombudsman Service, FOS award limit, FOS time limits, Insurance dispute
FOS jurisdiction is the set of conditions a complaint must satisfy before the Financial Ombudsman Service can determine it on the merits. It has four conventional limbs: (a) the firm must be subject to the FOS (whether under the Compulsory Jurisdiction or the Voluntary Jurisdiction); (b) the complainant must be “eligible” within the meaning of DISP 2.7; (c) the complaint must be about a covered activity in DISP 2.3 or DISP 2.5; and (d) the complaint must be brought within the applicable time limits in DISP 2.8.
If any limb is not satisfied, the FOS lacks jurisdiction and must dismiss the complaint at the threshold stage without determining the merits. Jurisdiction is determined by the Ombudsman, although either party may make submissions. The Ombudsman’s jurisdiction determinations are amenable to judicial review on conventional public-law grounds.
Jurisdiction analysis should not be confused with the FOS’s discretionary power under DISP 3.3 to dismiss a complaint without considering the merits (for example, where the complaint is frivolous, vexatious, has been the subject of court proceedings, or would be better dealt with elsewhere). DISP 3.3 dismissals presuppose jurisdiction; the FOS is electing not to exercise it.
The statutory framework is the Financial Services and Markets Act 2000, sections 226 (Compulsory Jurisdiction) and 227 (Voluntary Jurisdiction), with Schedule 17 governing the constitution of the scheme. The detailed jurisdictional rules are in the FCA Handbook, Dispute Resolution: Complaints (DISP), specifically DISP 2.
DISP 2.3 lists the activities falling within the Compulsory Jurisdiction. These include regulated activities under FSMA 2000 (with limited carve-outs), payment services, electronic money issuance, consumer credit activities, certain mortgage-related activities, and ancillary activities such as administering a regulated business. Insurance distribution, insurance underwriting and claims handling are all squarely within the CJ for FCA-authorised firms.
DISP 2.5 lists Voluntary Jurisdiction activities, into which firms can opt by signing up to the VJ. The VJ extends the FOS’s reach to activities not covered by the CJ, such as certain unregulated activities by VJ participants.
DISP 2.7 defines eligible complainants. The categories include consumers, micro-enterprises (turnover under €2 million and fewer than 10 employees), small businesses (turnover under £6.5 million, balance sheet under £5 million, fewer than 50 employees), charities with annual income under £6.5 million, trustees of trusts with net asset value under £5 million, certain CBTLs (consumer buy-to-let landlords), and limited categories of guarantors and third parties. The thresholds reflect Article 2 of the EU Recommendation 2003/361/EC as transposed into FCA rules.
DISP 2.8 sets the time limits for complaint referral (covered in a separate entry).
Jurisdictional analysis is the first step in any FOS complaint. The Investigator examines (a) whether the respondent is a CJ or VJ firm; (b) whether the complainant fits an eligible category at the date of the complaint, by reference to the relevant accounts and personnel records; (c) whether the underlying activity is covered; and (d) whether the time limits in DISP 2.8 are met.
For insurance complaints, almost all FCA-authorised UK insurers, intermediaries, MGAs and claims-handling firms are within the CJ. Lloyd’s underwriters are also within the CJ via the Society of Lloyd’s authorisation arrangements. EEA-passported firms historically fell within scope where they were carrying on activities from a UK establishment; post-Brexit transitional arrangements and the temporary permissions regime have introduced complexity that is now largely resolved through the supervised run-off and contractual continuity regimes.
For complainant eligibility, the FOS uses the threshold figures applicable at the time of the act or omission complained of (DISP 2.7.3R). A business that has subsequently grown above the small-business threshold is still eligible if it was within the threshold when the relevant conduct occurred. For groups, the thresholds are tested on a group-aggregated basis under DISP 2.7.6R.
Territorial scope is set by DISP 2.6, which requires the act or omission complained of to have occurred in carrying on the activity from an establishment in the United Kingdom. Cross-border services into the UK from EEA firms are covered only in limited circumstances post-Brexit.
Where jurisdiction is contested, the FOS issues a jurisdiction decision. If the Ombudsman finds the complaint within jurisdiction, the matter proceeds to merits. If not, the complainant’s options are to seek judicial review or, where appropriate, litigate the underlying dispute in court.
Eligible complainant categories in detail: - Consumer: A natural person acting for purposes outside their trade, business or profession. - Micro-enterprise: Turnover not exceeding €2 million and fewer than 10 employees (Article 2 EU Recommendation 2003/361/EC). - Small business: Turnover under £6.5 million, balance sheet under £5 million, fewer than 50 employees (introduced with effect from 1 April 2019). - Charity: Annual income under £6.5 million. - Trustee: Of a trust with net asset value under £5 million. - CBTL: Consumer buy-to-let landlord, with respect to certain regulated CBTL activities.
Compulsory Jurisdiction (CJ): Covers all FCA-authorised firms in respect of regulated activities, automatically and without opt-out. Includes insurers, brokers, MGAs, loss assessors (if authorised), and claims management companies. Section 226 FSMA 2000.
Voluntary Jurisdiction (VJ): Firms outside the CJ may apply to participate in the VJ to provide a complaints route for activities that would otherwise be outside the FOS. Section 227 FSMA 2000.
Activities outside FOS jurisdiction: Wholesale reinsurance (typically arbitrated under ARIAS UK), pure commercial-line claims by large corporates, captive insurance, and disputes between authorised firms inter se are generally outside the FOS, although carefully scoped exceptions exist.
Distinguish from Pensions Ombudsman jurisdiction: Occupational and personal pension scheme administration complaints are within the Pensions Ombudsman, not the FOS, although mis-selling and product-suitability complaints concerning pensions sit with the FOS.
A small business with turnover of £4.2 million, a balance sheet of £3.1 million and 38 employees holds a commercial combined insurance policy with an FCA-authorised UK insurer. Following a flood loss, the insurer declines indemnity. The business complains and, after a final response, refers the matter to the FOS.
The Investigator confirms that the insurer is an FCA-authorised firm within the CJ (limb (a)). The business is a small business within DISP 2.7.9R, with all three thresholds (turnover, balance sheet, employees) satisfied at the date of the policy and the loss (limb (b)). The complaint relates to insurance underwriting, which is within DISP 2.3 (limb (c)). The complaint was made within six years of the declinature and within six months of the final response, satisfying DISP 2.8 (limb (d)). The FOS confirms jurisdiction and the complaint proceeds to merits assessment.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Next review: 2026-12-11.
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