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Financial Ombudsman Service increases compensation limit

As it adjusts awards in line with inflation


The Financial Ombudsman Service (FOS) has confirmed it will raise its compensation limits.

This marks the maximum sum the ombudsman can require a financial services firm to pay when a complaint against it is upheld.

The limits are adjusted every year in line with inflation, as measured by the Consumer Price Index (CPI).

Compensation caps from 1 April 2022 will change to:

  • £375,000 ($508,515, €444,711) for complaints referred to the FOS on or after 1 April 2022 about “acts or omissions by firms” on or after 1 April 2019; and
  • £170,000 for acts or omissions before 1 April 2019.

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