YOUR COMPLIANCE MATTERS – FOS Award Limits increased
- By MICHAEL HANSON
- •
- 04 Apr, 2022
YOUR COMPLIANCE MATTERS – FOS Award Limits increased
Relevance: All Firms
Action required: Take note of increases and amend relevant documentation accordingly.
The FCA have recently issued the following statement:
| Increase to the FOS Award limit
In March 2019 we published PS19/8 to increase the ombudsman service’s award limit from £150,000 to £350,000 for complaints about acts or omissions by firms on or after 1 April 2019. We increased it to £160,000 for complaints referred to the service on or after 1 April 2019 about earlier acts or omissions.
We said that from 1 April 2020 both award limits are to be automatically adjusted each year to ensure they keep pace with inflation, as measured by the Consumer Price Index (CPI). We said the adjusted figure should be rounded down to the nearest £5,000.
The CPI figures for January 2022 have been released and from 1 April 2022 the limit will increase to £170,000 for complaints referred to the ombudsman service on or after 1 April 2022, about acts or omissions that took place before 1 April 2019. It will increase to £375,000 for complaints referred on or after 1 April 2022, about acts or omissions that took place on or after 1 April 2019.
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So, Award Limits from 01 April 2022:
£170,000 for complaints referred to the ombudsman service about acts or omissions that took place before 01 April 2019
£375,000 for complaints referred to the ombudsman service about acts or omissions that took place on or after 01 April 2019
You should ensure that any documentation or training material relating to this topic should be reviewed to ensure that it is kept up-to-date.
