PIMFA urges FCA to postpone FOS £350,000 compensation limit hike

Set for 1 April 2019

clock • 2 min read

PIMFA has called on the Financial Conduct Authority (FCA) to postpone its implementation of the revised Financial Ombudsman Services (FOS) compensation limits

Earlier this month, the regulator confirmed the FOS compensation limit would rise from £150,000 to £350,000 and the trade body said it had been assessing the impact of the implementation with its member firms - and particularly those that are currently seeking to renew their professional indemnity (PI) insurance. This comes after the FCA said PI costs could rocket by anything between 200% and 500%, according to forecasts made by insurers. The regulator did however note these figures came in higher than its own estimate of a 140% increase. The FCA admitted some firms could stop providi...

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