On 8 March 2019, the FCA confirmed that from 1 April 2019 the Financial Ombudsman Service’s (FOS) current £150,000 award limit will change to:
- £350,000 for complaints about actions or omissions by firms on or after 1 April 2019; and
- £160,000 for complaints about acts of omissions by firms before 1 April 2019, and which are referred to the FOS after that date.
In addition, from 1 April 2020, both award limits will be adjusted automatically each year in line with inflation. The limit will remain at £150,000 for any complaints referred to the FOS before 1 April 2019.
The new award limit will come into force at the same time as the extension of the service to larger small and medium-sized enterprises.
Andrew Bailey, Chief Executive of the FCA, said:
“Consumers and small businesses struggle with the cost and time needed to take firms to court, so it is essential they can receive fair compensation from the Financial Ombudsman Service when things go wrong. We have listened carefully to the feedback we have received and believe our approach is right and will bring benefits to both the consumers and micro-enterprises currently eligible for the ombudsman service and the small businesses who will become eligible in April.”
See the full FCA Policy Statement here.
