UK Financial Ombudsman Service Reports Drop in Complaints Regarding CFDs

The Financial Commission / Media posts / UK Financial Ombudsman Service Reports Drop in Complaints Regarding CFDs

The UK Financial Ombudsman Service (FOS), tasked with handling incoming inquiries and complaints from customers of UK registered financial services firms has published a report on 2019/2020 operating metrics. The report shows that the dispute resolution and regulatory body received over 270,000 new complaints about financial businesses in the 2019/20 financial year, mostly regarding Personal Protection Insurance (PPI).

The overall figures reported by the Ombudsman Service include:

  • 271,468 new complaints received (388,392 in 2018/19)
  • 295,596 complaints resolved (376,352 resolved in 2018/19)
  • 32% of complaints were upheld in favour of the consumer (28% in 2018/19)

It’s important to note that complaints regarding the trading of derivatives, such as Forex and CFDs, actually fell on a year over year basis by 41% to 222 complaints. Ombudsman resolutions of disputes about derivatives amounted to 122, down 26% from a year earlier. The percentage of complaints about derivatives upheld was 24% compared to 18% in the preceding year.

As such, the Ombudsman Service rules in favor of clients only roughly a quarter of the time and is seeing less complaints filed regarding such financial services as compared to the year before.

Share This Story, Choose Your Platform!