Financial ombudsman awards nearly £2m in compensation from 405 cases
- CIFO awarded £1,979,865 in compensation after closing 403 cases from 405 opened during the period
- Banking sector accounted for 64% of complaints, with current accounts the top product at 52%
- Poor administration and delay was the leading issue, cited in 23% of cases
- 60% of cases were settled informally, with total settlements exceeding reported compensation figures
- The ombudsman received 571 complaints across five main sectors including banking, insurance and pensions
The Channel Islands Financial Ombudsman has awarded £1,979,865 in compensation following case management activities during the reporting period.
The ombudsman received 571 complaints and opened 405 cases, of which 403 were closed. The organisation noted that 60 per cent of cases were settled informally, with total settlement amounts representing a multiple of the formal compensation figure, though these amounts remain subject to non-disclosure agreements.
Douglas Melville, Principal Ombudsman and CEO, said: “2025 was an interesting year from several perspectives.
"Our case management work was heavily focused on complaints involving fraud and account blocks and closures, while complaint volumes involving insurance eased notably.
"On the operations side, complainant contacts with CIFO relating to service complaints and data subject access requests under data protection regulations consumed an increasing proportion of our staff capacity.
"Our stakeholder engagement activities reflected all of these issues as well as emerging areas such as the introduction of lending and credit regulation in Jersey and the emerging attention paid to motor finance complaints in the UK, and more recently in the Channel Islands.”
The banking sector accounted for 64 per cent of all cases handled by CIFO. Insurance followed with 28 per cent, whilst pensions represented 4 per cent of cases. Non-bank money services and credit comprised 2 per cent, with investments and funds making up the remaining 1 per cent.
The insurance sector showed positive trends during the year, particularly in Guernsey, where cases fell by over 10%. The organisation said this likely reflects clearer communication with customers, better explanations and earlier resolution of issues by insurers and brokers.
Current accounts were the single largest product category, featuring in 52 per cent of cases. Health insurance accounted for 12 per cent of complaints, and home emergency insurance represented 10 per cent.
Poor administration and delay emerged as the most common issue raised in complaints, cited in 23 per cent of cases. Non-payment of claims followed at 16 per cent, whilst fraud accounted for 15 per cent of complaints.
The report distinguished between complaints and cases, noting that complaints refer to all matters received by CIFO about financial services providers, regardless of whether they ultimately fall within the ombudsman's statutory mandate.
Cases, by contrast, are complaints confirmed to be within CIFO's remit, though some exceptions may later be found to fall outside the mandate following closer review.
CIFO will also hold its Annual Stakeholder Meeting online on Wednesday 8th July 2026. The meeting will provide an opportunity for financial services representatives, consumer advocates, and members of the public to discuss the report’s findings and CIFO’s strategic priorities for 2026.
Q&A
Q: How much compensation did CIFO award during this period?
A: CIFO awarded £1,979,865 in compensation. However, total settlement amounts were significantly higher as 60% of cases were settled informally, with those amounts subject to non-disclosure agreements.
Q: Which sector generated the most complaints?
A: The banking sector dominated with 64% of all complaints, followed by insurance at 28%, pensions at 4%, non-bank money services and credit at 2%, and investments and funds at 1%.
Q: What was the most common complaint issue?
A: Poor administration and delay was the leading complaint issue, accounting for 23% of cases, followed by non-payment of claims at 16% and fraud at 15%.
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