FOS · Award threshold
FOS award threshold 2026 — what professional firms need to know
Reviewed by Apex Insurance Brokers · Published 15 July 2026
The Financial Ombudsman Service (FOS) award threshold sits at £430,000 for the 2024 award year, revised annually. Understanding its scope and application matters for regulated financial-services firms. Advice firms can read about how a specialist broker handles IFA PI before deciding how to approach the next renewal.
The current threshold
£430,000 per complaint, for the 2024 award year (April 2024 - March 2025).
£445,000 for the 2025 award year (indicative).
Revised annually in line with inflation.
Only complaints about acts/omissions after 1 April 2019 attract the higher threshold.
Older complaints attract lower £170k threshold.
What FOS can and cannot award
- Money awards up to the threshold, plus interest.
- Non-monetary directions: apologise, correct a record, take specific action.
- Cannot make punitive damage awards.
- Cannot award consequential losses beyond the threshold.
- Cannot make declarations of professional negligence directly.
Complaints outside the threshold
- Complaints exceeding the threshold: still adjudicated but capped at the limit.
- Consumers can pursue courts for the remainder.
- Larger commercial customers (over the FOS threshold) can't go to FOS at all.
- This creates a coverage gap for mid-tier commercial consumers.
PII implications
- FOS awards are covered by standard PII.
- Complaints often precede formal legal proceedings.
- Insurer involvement in FOS complaints depends on the wording.
- Multi-claimant FOS complaints (mis-selling) can aggregate.
- Consumer Duty (PRIN 2A) has increased FOS complaint volumes.
What firms should do
- Notify PI insurer of any FOS complaint promptly.
- Cooperate with FOS's investigation process.
- Preserve the complaint file completely.
- Consider FOS decisions as evidence for future insurance renewals.
- Broker involvement in FOS complex complaints matters.
Frequently asked
Does FOS cover all professional firms?
No — FOS covers FCA-regulated financial services firms. Non-regulated professionals go to court.
Is £430k the total limit or per year?
Per complaint, for complaints about acts/omissions after 1 April 2019.
Can FOS award more than £430k?
In additional interest and expenses, yes. But the compensation itself is capped.
What about consumer credit?
FOS covers FCA-regulated consumer credit firms — the threshold applies.
Do I need to notify insurer of a FOS complaint?
Yes — standard notification obligations apply.
What if the FOS decision goes against me?
The complaint stands as an insurance claim to the extent the policy responds. Broker involvement essential.
Related
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 724952. Registered in England and Wales, company number 07014570.