FOS award limit
Written on 15/03/2019

On 8 March 2019, the FCA published a policy statement, on increasing the FOS's award limit from 1 April 2019 (PS19/8).

The FCA has decided to introduce the changes as consulted on.  From 1 April 2019 the FOS's £150,000 award limit will change to:

  • £350,000 for complaints 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 and which are referred to the FOS after that date.

From 1 April 2020 onwards, both award limits will be automatically adjusted annually on 1 April to ensure they keep pace with inflation, as measured by the Consumer Prices Index (CPI). The reward limit will remain at £150,000 for complaints referred to the FOS before 1 April 2019.

You will have seen in the media that the underwriters are pricing in the added costs of the above, with a degree of enthusiasm.

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