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...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

Reeves to host meetings with financial services heavyweights over growth plans

Reeves to host meetings with financial services heavyweights over growth plans

Includes insurance and reinsurance leaders

Sorin Dojan
clock 21 January 2025 • 1 min read
FCA proposes that firms accept electronic verification of death

FCA proposes that firms accept electronic verification of death

Method to speed up bereavement claims

Jaskeet Briah
clock 20 January 2025 • 2 min read
Surge in probate delays following IHT changes

Surge in probate delays following IHT changes

134% rise in yearlong cases

Cameron Roberts
clock 16 January 2025 • 1 min read