New upper award limits for FOS

Chris Hamblin

13 May 2019

Additionally, from 1 April 2020 onwards, both award limits will be adjusted automatically "on 1 April" (presumably that means every 1st April thereafter) to ensure that they keep pace with inflation. In this instance the Financial Conduct Authority (which is responsible for the FOS) will be using the Government's controversial consumer price index.

When the FCA announced that the rules were changing in Policy Statement 19/8 in March, it said that its aim was to "secure an appropriate degree of protection for consumers," although it did not say what from.

The FCA has changed rule 3.7.4, on the subject of awards by the Ombudsman, in the Dispute Resolution Complaints Sourcebook (DISP), part of its consolidated rulebook.