Costs and expenses22

1

Where, under regulation 10(2)(f), the Ombudsman refers a question arising on an appeal to a person who, in his opinion, is able to provide an expert opinion in relation to that question, the Ombudsman may make a payment in respect of the reasonable costs or expenses incurred by that person in connection with that referral.

2

Where an oral hearing is held, the Ombudsman may pay any person specified in paragraph (3) such amount as he considers reasonable in respect of costs or expenses reasonably incurred in connection with the attendance of that person at an oral hearing.

3

The persons to whom the Ombudsman may pay an amount in respect of costs or expenses are—

a

any party to the appeal, other than the scheme manager;

b

a witness who has been requested to attend the hearing and give evidence; and

c

any representative of a party.

4

Where an oral hearing is held and the Ombudsman is of the opinion that—

a

any party to the appeal, or, if applicable, that party's representative, acted vexatiously;

b

the conduct of the appellant in making or pursuing the appeal was unreasonable; or

c

the conduct of the scheme manager in opposing the appeal was unreasonable,

the Ombudsman may direct any party who, or whose representative, acted vexatiously or unreasonably, to pay to any person mentioned in paragraph (3) such amount as the Ombudsman considers reasonable in respect of the costs and expenses reasonably incurred by that person in connection with that person's attendance at the hearing.

5

The Ombudsman may only make a payment under paragraph (2) or (3) if he gave prior approval for the costs and expenses to be incurred.

6

The Ombudsman may give a direction to the appellant under paragraph (4) despite the fact that the appellant has withdrawn the appeal.

7

The Ombudsman shall not give a direction to a person under paragraph (4) without first giving that person an opportunity to make representations.