10 April 2025
The Financial Services and Pensions Ombudsman (“FSPO”) published their annual Overview of Complaints (“2024 Overview”) on 25 March 2025. The FSPO gets its powers from the Financial Services and Pensions Ombudsman Act 2017 (the “Act”), and is empowered to deal with disputes through various methods including, mediation, formal investigation, and adjudication which can result in a legal binding decision. The 2024 Overview shows the trends in the 6,185 complaints received that year.
5,907 of the complaints received were closed in the same year which means 86% of complaints closed within the 12-month period. This shows a significant increase of 14% from 2023 and 27% from 2022. Insurance related complaints saw an increase of 26% from 2023, with much of this increase being attributed to an increase coming from customer service and response time issues. As expected, the larger urban areas presented the most complaints with Dublin seeing 1,758 complaints and Cork 467. While the FSPO only has jurisdiction within the Irish State, it nonetheless received several complaints from outside both Ireland and Europe, with 199 complaints from the UK, 125 from France, and 24 from the U.S.
In terms of the financial outcomes of complaints in 2024, a total of:
These figures only represent the monetary sums that were paid to complainants, and do not reflect the other forms of remediation that were obtained.
In terms of all the complaints made in 2024, customer service was the most frequent grievance standing at 22%, showing a pattern over the last 3 years. The second and third most frequent grievances involved disputed transactions and incorrect/unsuitable advice, representing 16% and 3% of all complaints, respectively.
Banking saw a decrease in complaints compared to 2023. Over 50% of complaints were in relation to either customer service or disputed transactions. The FSPO saw a 12% increase in complaints relating to disputed transactions within banking, reflecting a continued increase in fraud and scams. While much of the disputed transactions relates to fraud/unauthorised transactions, the FSPO is not empowered to investigate fraud, instead they can merely assess the manner in which a financial service provider has dealt with or has failed to deal with a fraudulent transaction. The increase in fraudulent transactions is a concern, as the sector as a whole becomes more digitised, putting vulnerable customers more at risk. The Central Bank of Ireland (the “CBI”) has recently published the Consumer Protection Code 2025 which includes enhanced protections for those who are considered vulnerable customers. This Code will be fully implemented in 2026 i.e. institutions have 12 months to implement changes. The FSPO has seen a decrease in complaints relating to tracker mortgages, with only 19 complaints outlined within the 2024 Overview.
Insurance complaints increased by 26% in 2024 with 47% of those complaints pertaining to either claim handling or rejection of a claim. Investment related complaints decreased by 11% from 2023 while pension-related complaints increased by 6% from the preceding year. The most frequent complaints raised involved maladministration. The FSPO saw an increase in complaints related to unregulated entities, with 143 raised in 2024. As unregulated entities are not within scope of the Act and the powers of the FSPO, these complaints could not be progressed.
| Complaints by sector in 2024 | |
|---|---|
| 3,404 banking related complaints (55%) of total | |
| Accounts | 1,787 (53%) of banking |
| Mortgages | 760 (22%) of banking |
| 1,818 insurance related complaints (29%) of total | |
| Motor Insurance | 754 (41%) of insurance |
| Health Insurance | 247 (14%) of insurance |
| 411 investment related complaints (7%) of total | |
| Investment | 294 (72%) of investments |
| Pension | 110 (27%) of investments |
| 348 pension related complaints (6%) of total | |
| Occupational Pension Scheme |
288 (83%) of pensions |
| PRSA | 38 (11%) of pensions |
Not all complaints that are submitted to the FSPO require a full investigation and decision. Complaints may be resolved between the customer and the Provider during the preliminary stages or during mediation. Customers may also withdraw their complaints of their own volition, while some complaints may be outside the scope of the FSPO’s powers of reviews.
3,055 complaints were closed at this preliminary stage. Nearly 50% of those closed because they did not comply with the requirements for review (e.g. the customer had not exhausted the Provider’s internal dispute resolution procedure). Some complaints were withdrawn, while others were outside the jurisdiction of the FSPO.
If complaints are not dealt with at preliminary stage, then they go to mediation. The FSPO asserts that 70% of overall complaints are resolved when referred to mediation. In recent years, a new mechanism has been put in place whereby some disputes can be referred back to mediation. 2,290 complaints were resolved during this stage, 1,407 through a mediated settlement, and 699 through clarification by the Provider. The remaining complaints were either withdrawn or were incomplete.
417 complaints were closed through the FSPO’s formal investigation process. 175 of these did not lead to a decision by the FSPO due to either a settlement offer being accepted or the complaint being withdrawn. In relation to decisions given by the FSPO, 187 complaints were not upheld and 58 were either upheld, substantially upheld, or partially upheld
The FSPO is required to co-operate with the CBI, the Competition & Consumer Protection Commission (the “CCPC”), and the Pension Authority (the “PA”) under section 18 of the Act. Referrals can be made to the relevant regulatory authorities for various reasons, including if a complaint raises a possibility of a systemic issue which may warrant consideration. In 2024, six decisions were referred to the CBI and one to the PA. One referral to the CBI concerned an unsatisfactory approach to the calculation of mortgage arrears by a lender which indicated that there may be read across.
Some complaints will require review to ensure it falls within the jurisdiction of the FSPO. 147 complaints were closed through this process, with 110 determined to be outside the jurisdiction. Reasons for being outside the jurisdiction of the FSPO include exceeding the 6-year time limit for complaints, the complainant not falling within the definition of a consumer, or if a complaint is better suited to determination by a court.
The Act provides a mechanism whereby a Provider or a complainant can appeal a decision by the FSPO to the High Court. At the beginning of 2024, there were 7 proceedings outstanding, with 4 sets of proceedings initiated within the year. As of year-end, there are only 3 active appeals with 2 initiated by PTSB, and one by a consumer.
Under section 25 of the Act, the FSPO is permitted to publish the names of Provider that have at least 3 complaints against them upheld whether entirely, substantially or partially. In 2024, the FSPO named 3 institutions, with Ulster Bank having 10 complaints upheld, Hiscox 8, and 3 for KBC. It should be noted that the 2 banks named have now left the Irish market.
While there was not a major increase in the number of complaints submitted to the FSPO in 2024 from 2023, there has been an increase from the 2018 – 2022 period. Dealing with complaints to the FSPO can be a time-consuming and costly process, so providers should ensure that their internal processes effectively safeguard against consumer complaints being escalated to the FSPO. Proper management and oversight of complaints together with efficient, early resolution and customer engagement can reduce the number of complaints that are submitted to the FSPO.
The Financial Services Regulation team within KPMG Law LLP can assist financial service and pension providers with ensuring that efficient internal safeguards are in place to reduce the risk of consumer grievances being reported to the FSPO for review. The team can also advise Providers in relation to complaints that have already been referred to the FSPO, whether regarding the overall procedure or advises relating to communications with the FSPO and engagement with the formal investigation procedure.
