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The Financial Conduct Authority (FCA) has today confirmed that the Financial Ombudsman Service will soon be able to require financial services firms to pay significantly more compensation to consumers and businesses.
https://www.fca.org.uk/news/press-re...ce-award-limit
From 1 April, the current £150,000 limit will increase to £350,000 for complaints about actions by firms on or after that date. For complaints about actions before 1 April that are referred to the Financial Ombudsman Service after that date, the limit will rise to £160,000.
The FCA has also confirmed that both award limits will be automatically adjusted every year to ensure they keep pace with inflation.
The new award limit will come into force at the same time as the extension of the service to larger small and medium-sized enterprises (SMEs). These are firms with fewer than 50 employees, annual turnover of under £6.5 million and an annual balance sheet total of under £5 million. An additional 210,000 SMEs will be able to complain to the Financial Ombudsman Service.
https://www.fca.org.uk/news/press-re...ce-award-limit
From 1 April, the current £150,000 limit will increase to £350,000 for complaints about actions by firms on or after that date. For complaints about actions before 1 April that are referred to the Financial Ombudsman Service after that date, the limit will rise to £160,000.
The FCA has also confirmed that both award limits will be automatically adjusted every year to ensure they keep pace with inflation.
The new award limit will come into force at the same time as the extension of the service to larger small and medium-sized enterprises (SMEs). These are firms with fewer than 50 employees, annual turnover of under £6.5 million and an annual balance sheet total of under £5 million. An additional 210,000 SMEs will be able to complain to the Financial Ombudsman Service.