Ombudsman updates distress and inconvenience compensation guidance

More detailed guidance, 'fairer' outcome

Julia Bahr
clock • 2 min read

The Financial Ombudsman Service (FOS) has refreshed its guidance on making awards for distress or inconvenience.

The body said while its approach had not changed more detailed guidance would result in fairer consumer outcomes.  "Our approach hasn't changed, but our stakeholders tell us that more detailed guidance will help financial businesses and their customers reach a fair outcome", said Garry Wilkinson, principal Ombudsman and director of investigation. He explained that there may be different types of compensation to consider if a customer has lost out as a result of a mistake. Ombudsman awards fair compensation for any of the following: distress inconvenience pain and suffering...

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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Non-financial misconduct: Is the FCA's final guidance progress or overreach?

Non-financial misconduct: Is the FCA's final guidance progress or overreach?

'The FCA's rationale is clear: workplace culture drives conduct risk'

David Hamilton
clock 26 January 2026 • 4 min read
FCA ban and £2m fine upheld against 'worst' British Steel adviser

FCA ban and £2m fine upheld against 'worst' British Steel adviser

Upper Tribunal backs regulator's findings in key BSPS misconduct case

Sahar Nazir
clock 19 January 2026 • 2 min read
Failed financial advice firms tracker

Failed financial advice firms tracker

Firms that the FSCS has confirmed as failed since the start of 2023

Professional Adviser
clock 19 January 2026 • 1 min read