Financial Conduct Authority (FCA) UK Regulation Sample Exam

Who is eligible to lodge a complaint with the Financial Ombudsman Service?

1. A corporate client with assets exceeding £5 million

2. A trustee of a trust with a net asset value of less than £1 million

3. An individual with a personal investment account

4. A charity organization with a registered status

The correct answer is: A trustee of a trust with a net asset value of less than £1 million

The Financial Ombudsman Service (FOS) provides a platform for resolving disputes between consumers and financial services firms. The eligibility to lodge a complaint with the FOS is largely determined by the nature of the complainant and the specifics of the relationship with the financial firm. A trustee of a trust with a net asset value of less than £1 million qualifies to lodge a complaint because the FOS is designed to assist individuals and small businesses, including certain types of trusts, as well as charities and personal investment accounts. In the context of this service, a trust with a net asset value under the stipulated threshold aligns with the characteristics of a typical consumer and thus falls within the service's jurisdiction. This means that the trustee's situation is treated similarly to that of individual consumers. For the other options, a corporate client with assets exceeding £5 million generally does not have access to the FOS, as it is often considered to have the means to seek resolution through other legal or commercial avenues. An individual with a personal investment account is likely eligible, but the scenario described does not specify whether there are any limitations or conditions that would affect the eligibility. Lastly, while charity organizations with registered status can lodge complaints with the FOS, their eligibility might depend on the