FCA and other regulators scrap £10k compensation cap

A revised scheme will apply from 1 November 2023

Isabel Baxter
clock • 1 min read

The Financial Conduct Authority,  alongside the Prudential Regulation Authority and the Bank of England, have removed a proposal that no compensatory payment relating to a financial loss will exceed £10,000.

After considering feedback from their consultation, the regulators have removed the proposal that no compensatory payment relating to a financial loss will exceed £10,000, save in exceptional circumstances. The new scheme will apply from 1 November 2023. Complaints made prior to this date will be considered under the existing scheme. The regulators claim the revised scheme provides clarity around what people can expect when they complain, making it more "transparent and user-friendly".  They confirmed that they will consider making a discretionary payment in recognition of financia...

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Isabel Baxter
Author spotlight

Isabel Baxter

News editor at Professional Adviser

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