FOS limit changes

On 1 April 2019, the FCA increased the Financial Ombudsman Service’s award limit from £150,000 to £350,000. This applies to complaints referred to the Ombudsman service on or after 1 April 2019 about firms’ acts or omission on or after that date.

The limit for complaints referred to the service on or after 1 April 2019 about pre-1 April acts or omissions, was increased to £160,000.

These limits are adjusted each year to ensure they keep pace with inflation. This is done by applying the percentage increase in the Consumer Prices Index (CPI) between January 2019 and January of the relevant year, and rounding the adjusted figure down to the nearest £5,000.

Following the publication of the CPI figures for January 2020, the award limits are increased as follows:

  • For complaints referred to the Ombudsman service on or after 1 April 2020 to £355,000 for complaints about acts or omissions on or after 1 April 2019.
  • There will be no changes to the other limits.

Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.

ATEB Compliance offers compliance and regulatory advice.

ATEB Suitability provides report writing software for the financial services market.

Our View

For information.

Action Required By You

  • Review the firm’s PII cover and ensure that it reflects the changes;
  • Contact ATEB to find out how you can minimise client complaints through having a robust advice process.

About the Author

Technical Manager - Often referred to as the Oracle or the Sage, Alistair has a wealth of financial services experience. He is our go-to Technical Manager and enjoys nothing more than a complicated conundrum. Feel free to test his renowned knowledge by getting in touch.

Contact Us

Explore more articles in this category

Other articles that you might be interested in