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.

FOS · Award threshold

FOS award threshold 2026 — what professional firms need to know

Reviewed by Apex Insurance Brokers · Published 15 July 2026

For complaints referred on or after 1 April 2026, the Financial Ombudsman Service (FOS) can award up to £455,000 where the act or omission happened on or after 1 April 2019, and up to £205,000 for earlier acts. The limits rise with inflation each April, and interest and costs can be added on top. If your PI limit or excess was set against an older figure, check it at renewal. Advice firms can read about how a specialist broker handles IFA PI before deciding how to approach the next renewal.

The current threshold

£455,000 per complaint, for complaints referred on or after 1 April 2026 about acts or omissions on or after 1 April 2019.

£205,000 where the act or omission happened before 1 April 2019.

For complaints referred from 1 April 2025 to 31 March 2026 the limits were £445,000 and £200,000.

The FCA uprates the limits in line with CPI each 1 April (DISP 3.7.4R).

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 £455k the total limit or per year?

Per complaint. £455,000 applies to complaints referred on or after 1 April 2026 about acts or omissions on or after 1 April 2019.

Can FOS award more than £455k?

Interest and costs can be added on top, and the ombudsman can recommend, but not require, a higher payment. The money award 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.

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