The Financial Services Authority's (FSA) decision to up the redress limit at the Financial Ombudsman Service (FOS) will lead to more judicial reviews brought by angry firms, and harsher defending by the regulator, a City law firm has warned.
The upper limit for FOS awards will be increased to £150,000 from £100,000 on 1 January 2012. Law firm Reynolds Porter Chamberlain (RPC) said the move will push firms "increasingly upset at the perceived injustices of working under the FOS' jurisdiction" to press for court review of the Ombudsman's decisions. Robbie Constance, senior associate at RPC, said: "There may be angry firms more inclined to have a pop through judicial review which is the only way they are able to but I don't think that will mean they have any greater prospects of success. "The problem is judicial review is...
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