FCA confirms higher FOS compensation limit despite industry backlash

The FCA has confirmed that the maximum amount of compensation the Financial Ombudsman Service can award will increase from £150,000 to £350,000, despite industry experts warning that the changes could be detrimental to advisers, firms and consumers.

The limit will increase from the 1st of April for complaints about actions by firms on or after that date. For complaints about actions before 1 April that are referred to FOS 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.

Source: financial reporter
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