Higher payouts on FOS complaints
The Financial Conduct Authority (FCA) has increased the FOS award limits.
The Financial Ombudsman Service (FOS) adjudicates on disputes between financial services companies and their customers.
The new award limit is the maximum amount that FOS can require a financial services firm to pay when it upholds complaints. This limit is adjusted each year in line with inflation, as measured by the Consumer Prices Index (CPI). As of 1 April 2022, FOS award limits have changed to:
- £375,000 for complaints referred to FOS on or after 1 April 2022, about acts or omissions by firms on or after 1 April 2019;
- £170,000 for complaints referred to FOS on or after 1 April 2022 about acts or omissions by firms before 1 April 2019.
Different limits apply depending on when the complaint was brought to FOS. You can read about current and previous limits here.
FOS have updated the guidance on its website to reflect these changes, and the FCA’s policy statement PS19/8 sets out the full background to increasing FOS award limits. The change can also be seen in the FCA’s handbook.
The information in this article is correct as of 21/04/2022.