Warning Fos limit could 'cripple' advisers
The decision to increase the Financial Ombudsman Service's compensation limit could be "crippling" for the financial advice profession.
The Financial Conduct Authority has proposed increasing the limit from £150,000 to £350,000 as part of plans to allow small businesses to use the Fos.
Under the plans, published last October, claimants will be able to claim up to £350,000 through the Fos from 1 April 2019 if the incident complained about took place on or after this date.
If it took place before 1 April 2019 the compensation limit will be £160,000 and both limits will be increased by consumer prices inflation every year to make sure consumers and small businesses receive adequate compensation.
Russell Facer, managing director of threesixty, said the proposal could lead to increased professional indemnity insurance premiums for advisers.
To see Russell's comments in full click here