The Financial Ombudsman Service (FOS) has announced that the FCA has confirmed the increase to the FOS award limit for the coming financial year. The award limit is the maximum amount FOS can require a financial business 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 provided for in FCA Policy Statement PS19/8.
From 1 April 2024, the FOS award limits will go up to:
- £430,000 for complaints referred to FOS on or after 1 April 2024 about acts or omissions by firms on or after 1 April 2019
- £195,000 for complaints referred to FOS on or after 1 April 2024 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 on the FOS understanding compensation page. FOS will be updating the guidance on its website to reflect these changes from 1 April 2024. Similarly, the change will be made to the FCA Handbook (DISP 3.7.4) at the same time.