Thursday, December 8, 2022
HomeBusinessFinancial PlanningFOS to extend award restrict by £20k to £375k

FOS to extend award restrict by £20k to £375k

The Monetary Ombudsman Service (FOS) has been given the go forward by the FCA to extend its most compensation award to £375,000 from 1 April.

The information means the utmost award will rise by £20,000 from £355,000 to £375,000.

The award restrict is probably the most the FOS can require a monetary providers agency to pay when Ombudsman complaints are upheld towards them.

Many monetary advisers have been angered in 2019 when the FOS greater than doubled the award restrict from £150,000 to £350,000.

The FOS says the restrict is now adjusted every year in step with inflation, as measured by the Shopper Costs Index (CPI).

From 1 April, the award limits will change to:

  • £375,000 for complaints referred to the FOS on or after 1 April 2022 about acts or omissions by companies on or after 1 April 2019
  • £170,000 for complaints referred to on or after 1 April 2022 about acts or omissions by companies earlier than 1 April 2019

For complaints referred to the FOS between 1 April 2019 and 31 March 2022 about acts or omissions by companies on or after 1 April 2019, the restrict can be £350,000 and for complaints referred earlier than 1 April 2019, the bounds will stay at £150,000.

The FOS web site can be up to date to mirror the adjustments from 1 April.

The FCA’s coverage assertion PS19/8  units out the background to rising the award limits. The change can be seen within the FCA’s handbook






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