(1)    Where the Ombudsman is under a duty to carry out a review on an application under section 110, he must—

(a)    on the basis of any findings he makes about the grounds for the application, decide to what extent the grounds are established;

(b)    decide what if any action to take under subsections (2) to (7).

(2)    If he decides that the grounds are established to any extent, he may make recommendations to the Lord Chancellor and Lord Chief Justice.

(3)    A recommendation under subsection (2) may be for the payment of compensation.

(4)    Such a recommendation must relate to loss which appears to the Ombudsman to have been suffered by the applicant as a result of any failure or maladministration to which the application relates.

(5)    If the Ombudsman decides that a determination made in the exercise of a function under review is unreliable because of any failure or maladministration to which the application relates, he may set aside the determination.

(6)    If a determination is set aside under subsection (5)—

(a)    the prescribed procedures apply, subject to any prescribed modifications, as if the determination had not been made, and

(b)    for the purposes of those procedures, any investigation or review leading to the determination is to be disregarded.

(7)    Subsection (6) is subject to any direction given by the Ombudsman under this subsection—

(a)    for a previous investigation or review to be taken into account to any extent, or

(b)    for any investigation or review which may form part of the prescribed procedures to be undertaken, or undertaken again.

(8)    This section is subject to section 112.