Financial Conduct Authority consults on increasing the award for the Financial Ombudsman Service
The Financial Conduct Authority (FCA) is consulting on increasing the award limit for the Financial Ombudsman Service (FOS). The relevant Consultation Paper (CP 18/31) closes for comment on 21 December 2018.
At present, the FOS can require FCA authorised firms to pay awards of up to £150,000 to eligible complainants. It is possible for the FOS to recommend that a firm pays a larger amount, but it is not compulsory for firms to do so.
The FCA’s view is that the £150,000 award is no longer adequate, and the proposal is to increase the award to £350,000 for new complaints. Note however that the new £350,000 limit would apply to complaints about firms’ acts or omissions that happen on or after 1 April 2019.
For new complaints that relate to acts or omissions that took place prior to 1 April 2019, the proposal is to increase the current limit to £160,000. For any complaints referred to the ombudsman before 1 April 2019, the limit will remain at £150,000.
There is also a proposal that from 1 April 2020 onwards, both award limits are automatically adjusted on 1 April each year to make an adjustment for inflation.
The proposal sits alongside a policy statement with near-final rules on extending access to the FOS to a larger category of small and medium-sized enterprises.
The proposals will certainly be welcomed by eligible complainants with high value complaints as a genuine alternative to court proceedings due to the larger potential award. However, it may be disappointing to some that the larger award only relates to business taking place from 1 April 2019. That being said, it is likely that the proposals could lead to an increased number of high value (and potentially more complicated) claims coming through the FOS. One of the concerns with complaining through the FOS at present is that the process can be time-consuming, with long delays while the FOS assesses each stage of the complaint. Further, on occasion the FOS will dismiss a complicated complaint, confirming that it may be better dealt with through the courts. It is hoped that the FOS will be able to address these issues before the proposals come into existence in order to make the FOS a genuine alternative to court proceedings for high value complaints.
For more information please contact Jessica Arrol on +44 (0)20 7427 6709 or at firstname.lastname@example.org.
Sponsor Licence Compliance: Key considerations & how to be audit ready
Join us for the third in our series of mini webinars on post Brexit immigration about sponsor licence compliance.
The Future of Property Careers
Join to our panel discussion and Q&A with industry leaders on the range of opportunities within the property and construction sector.
Sustainable Investing: From ESG Integration to Impact Investing
We have a wide perspective on the range of issues that fall within the spectrum from ESG to impact investing.
Liability for costs of repair (City of London v. Leaseholders of Great Arthur House)
Oliver Park writes an article for Lexis®PSL on a property dispute case.
New tax on property developers - consultation paper published
The government published a consultation paper on the design of the new residential property developers tax.
Procuring modular housing: Is MMC becoming mainstream?
Is Modern Methods of Construction becoming mainstream? Read what it means for Development and Procurement here.
Dual class share structures: how do they work and what are the pros and cons?
Dual class share structures allow a shareholder, for example the founder, to retain voting control over a company.
Q&A: Talking the telecoms talk
Georgina Muskett and Jonathan Wills answer queries on Electronic Communications Code agreement.
Property Patter: Navigating the complexities of Pharmacy Property
Pharmacy property is a specialist area which contains many traps for the unwary.
COVID-19 Vaccination – can an employer make it compulsory for employees?
We review what legal issues to take into account when considering to make vaccination compulsory as an employer.
Linking ESG and Executive Pay
How does a business go about embedding a focus on strong ESG performance into the structures and culture of its organisation?
National Security and Investment Act granted Royal Assent
The Act establishes a new regime for the review of mergers, acquisitions and other transactions that could threaten national security.
Recent Trends In Firewall Legislation: BVI, Bermuda And Gibraltar
Charles Russell Speechlys advises Waverton on acquisition of Cornerstone Asset Management
Established in July 2010 and with offices in Edinburgh and Glasgow, Cornerstone offers wealth management and financial planning advice.
What do the new Debt Respite Scheme Regulations mean for Landlords and Tenants?
This will provide legal protection from creditors in the form of either a breathing space or a mental health crisis moratorium.
Charles Russell Speechlys promotes five to Partner
The promotions are effective 1 May 2021 and are accompanied by one Legal Director and 15 Senior Associate promotions.
Risk allocation in commercial leases: the High Court considers rent suspension, insurance and frustration arguments
Read our summary of the full judgement on the latest Covid arrears case.
Charles Russell Speechlys boosts private wealth offering with the hire of an international tax team
Robert Reymond will be joined at the firm by Leigh Nicoll, Emma Tyrrell and Oliver Cooper.
eprivateclient and Citywealth report on the hire of a new international tax team led by Robert Reymond
The firm strengthened its international wealth structuring capabilities with the hire of an international tax team led by Robert Reymond.
Proposed Takeover Code Amendments – Key Changes
The Consultation Paper has now been followed by a corresponding response paper which made certain modifications to the initial proposals.