For complaints after 1 April 2022, when is an insurer or intermediary bound by the FOS's decision?

An insurer or intermediary is bound by the Financial Ombudsman Service's (FOS) decision regarding complaints that arise on or after 1 April 2022, specifically when the Ombudsman's award does not exceed £375,000. This limit represents a regulatory threshold that defines the maximum amount for which the FOS's decision is binding on the insurer or intermediary.

This framework serves to ensure a level of consumer protection while also considering the financial institutions' capacity to absorb such awards. Claims exceeding this limit can still be brought to the FOS for consideration, but the decision would not be binding on the insurer or intermediary; they could choose to contest such claims in court.

Understanding this threshold is vital for both consumers and industry professionals, as it highlights the limitations of the Ombudsman's authority concerning different complaint values and reinforces the significance of the £375,000 cap established for resolutions stemming from complaints post-April 2022.