The Financial Ombudsman Service (FOS) should scrap or substantially raise its £100,000 redress limit, urges the All Party Parliamentary Group on Insurance and Financial Services (APPGIFS).
In its recommendations to Lord Hunt who is conducting a review of the FOS, APPGIFS says the existing limits on binding awards were established over a quarter of a century ago and have not increased in line with financial transactions carried out by retail and small business customers. It would like to see the limit abolished altogether but accepts some ceiling would need to be imposed. “This would need to be at a level that would prevent the overwhelming majority of complainants contemplating the courts as a viable alternative to the FOS,” it says. The APPGIFs also says it is against ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes