U.K. FCA Proposes Raising Award Limit for Ombudsman Service

(Bloomberg) -- The U.K.’s markets regulator proposed more than doubling the amount of compensation that its ombudsman service can order financial firms to pay.

The maximum award for “acts or omissions” by firms starting April 1 next year would rise to 350,000 pounds ($462,000) from the current level of 150,000 pounds, the Financial Conduct Authority said. About 2,000 complaints upheld each year could be due compensation above the current limit, the regulator said.

• Limit would rise to 160,000 pounds for complaints referred to the ombudsman service after April 1, 2019, but concerning actions prior to that date
• FCA says the ombudsman service helps individuals and small companies that are unlikely to have the resources to pursue a complaint against a firm through the courts
• FCA seeks public comment on its proposals by Dec. 21

©2018 Bloomberg L.P.