Limits unchanged for FSCS and FOS

The Financial Services Authority has recommended that the Financial Services Compensation Scheme’s limits and the Financial Ombudsman Service’s compulsory jurisdiction should not be changed.

The regulatory body’s recommendation comes after it found most claims or complaints were still well below the current maximum limits.

Current limits for the FSCS, which covers deposits and investments, significantly exceed the €20,000 EU minimum.

The FOS limit will stay at 100,000 for all types of business.

The FSA says there is no evidence of significant consumer detriment or distortions to consumer behaviour either now or in the immediate future that would justify changing the limits.

Robin Gordon-Walker, spokesperson for the FSA, says: “It has been recommended to keep these limits the same as there is no evidence consumer behaviour and market confidence are being significantly affected by them.”

The FSA will review the limits again in about five years’ time.