Maximum ombudsman compensation limit to rise to £355,000

Changes to start on 1 April

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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.

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