The FSA are expected to set out its final proposals in May of this year to increase the amount of protection offered by the FOS by raising its award Limit.

The proposal has sparked concerns that professional indemnity insurance premiums will rise as a result bringing yet more cost on advisers.

The FSA is expected to confirm the Financial Ombudsman Service’s new award limit is to rise from £100,000 to £150,000.

The regulator first floated the increase in a discussion paper on consumer complaints in March 2010 and published the proposal formally in a consultation paper on complaints handling in September 2010.  We will be watching developments closely and will bring you comment from the Professional Indemnity industry as we get them.

David Hedgecock

Hammond Professional Indemnity Consultants 

25 March 2011