FOS compensation limit hiked to £415,000
The Financial Conduct Authority has raised the limit on complaints awards that the Financial Ombudsman Service can dish out to £415,000.
The increase, which is from £375,000, comes into effect on 1 April with the limit being adjusted each year in line with inflation, as measured by the Consumer Prices Index.
This top figure is for complaints that have been referred to the FOS on or after 1 April 2023 about acts or omissions by firms on or after 1 April 2019.
Any complaints made after this April deadline, which refer to events before 1 April 2019, have a lower limit of £190,000. This limit has also risen from £170,000 previously.
Switch
The switch to annual inflation-linked boosts first came into effect in 2019 when the FCA reset the maximum compensation from £150,000 to £350,000.
The process came into force at the same time as the FOS’ remit was widened to SMEs with turnover of under £6.5m and fewer than 50 employees.
Previously, only individual consumers and micro-SMEs with fewer than 10 employees and turnover of under €2m (£1.76m) could go to the FOS.
The FCA is currently reviewing shifting the thresholds again for SMEs to be able to refer complaints to the FOS, as it revealed there have been 1,835 insurance complaints since the rules changed in 2019.
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