FCA proposes to increase FOS limit from £150,000 to £350,000

From 1 April 2019

Tom Ellis
clock • 2 min read

The Financial Ombudsman Service (FOS) would be able to force firms to pay up to £350,000 to complainants under new proposals drawn up by the Financial Conduct Authority (FCA).

The regulator said its CP18/31 proposals - which would more than double the amount the ombudsman could make firms compensate people - would be fairer for customers. According to the FCA, the ombudsman upholds some 2,000 complaints each year that result in a 'fair compensation' recommendation of more than the current £150,000 limit. While the ombudsman can force firms to pay compensation of up to £150,000, it can recommend firms pay more to the complainant if it believes that is appropriate. Any amounts above the limit are voluntary for the firm, however. Once a complainant accepts £15...

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