The Finance Conduct Authority (FCA) has confirmed the annual increase to the Financial Ombudsman Service (FOS) award limits.
The award limit is the maximum amount the FOS can require a financial service firm to pay when it upholds complaints.
It is adjusted each year in line with inflation, as measured by the Consumer Prices Index (CPI).
Changes
From 1 April 2020, the FOS award limits will change to:
- £355,000 ($408,520, €379,418) for complaints referred to the FOS on or after 1 April 2020 about acts or omissions by firms on or after 1 April 2019; and
- For complaints about acts or omissions by firms before 1 April 2020 and which are referred to the service after that date, the limit will remain at £160,000.
For complaints referred to the FOS between 1 April 2019 and 31 March 2020 about acts or omissions by firms on or after 1 April 2019, the limit will be £350,000.
Also, for any complaints referred to the service before 1 April 2019, the limits will remain at £150,000.
The FOS will be updating the guidance on its website to reflect the changes from the 1 April.
