UK: Increase In Financial Ombudsman Service Award Limits

From 1 April the Financial Ombudsman Service (FOS) award limits have increased to the following amounts:

• £375,000 for complaints referred to the 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 the FOS on or after 1 April 2022 about acts or omissions by firms before 1 April 2019.

This is an increase from the previous award limits, which were set at:

• £355,000 for complaints referred after 1 April 2020 about acts or omissions by firms on or after 1 April 2019;
• £160,000 for complaints about acts or omissions by firms before 1 April 2019 referred after that date.

The award limit is adjusted each year in accordance with the Consumer Prices Index (CPI), and follows the position set out in the FOS policy statement dated March 2019.

This development may be of interest to professional indemnity claims handlers, amongst others. The increase in the award limit may, for example, mean that more claimants choose to pursue a complaint to the FOS, in appropriate circumstances, rather than litigation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.