Financial Ombudsman Service (FOS) — Complete Guide
The free, independent alternative to court for financial disputes. Awards up to £455,000 against firms that are still trading.
Quick Answer: The Financial Ombudsman Service resolves disputes between UK consumers and FCA-authorised firms. It is free to consumers and awards up to £455,000 for acts on or after 1 April 2019 (£205,000 before). You must complain to the firm first — they have 8 weeks under DISP 1.6 — and refer to FOS within 6 months of their final response. Source: FOS Annual Report 2024/25; DISP 2.
What the Financial Ombudsman does
FOS is a statutory dispute-resolution body created by the Financial Services and Markets Act 2000. It decides financial complaints on what is "fair and reasonable in all the circumstances" — a broader test than a court's strict application of law. Its decisions are binding on the firm if the consumer accepts them.
Current award limits
| When act took place | Award limit |
|---|---|
| On or after 1 April 2024 (per FEES 5) | £455,000 |
| 1 April 2019 – 31 March 2024 (varies by year) | £355,000–£430,000 |
| Before 1 April 2019 | £205,000 |
The Ombudsman can also require interest at 8% simple per year on the loss, plus modest distress-and-inconvenience awards.
Eligibility — who can complain
- Individual consumers.
- Micro-enterprises (fewer than 10 staff, turnover ≤ €2m).
- Small businesses (turnover under £6.5m, balance sheet under £5m, fewer than 50 employees).
- Charities under £6.5m annual income; trustees of trusts under £5m net asset value.
The DISP process — step by step
- Complain to the firm in writing. They have 8 weeks under DISP 1.6 to send a final response.
- Refer to FOS within 6 months of the final response (or as soon as 8 weeks pass without one).
- Adjudicator review — usually 3–6 months; issues a preliminary view.
- Ombudsman final decision if either side rejects the adjudicator's view. Binding on the firm if accepted.
See How to complain about a financial adviser for the full template.
FOS vs FSCS — which route
Use FOS when the firm still trades. Use the FSCS when the firm has failed and been declared in default. Full comparison: Financial Ombudsman vs FSCS.
Time limits
FOS jurisdiction ends 6 years after the event complained about, or 3 years from the date you ought reasonably to have known you had cause to complain — whichever is later. See Time limits & date-of-knowledge rule.
Frequently asked questions
How much can the Financial Ombudsman award?
£455,000 for complaints about acts or omissions on or after 1 April 2019. £205,000 for acts before that date. Limits are refreshed each April in line with CPI (FEES 5).
Is the Financial Ombudsman free?
Yes — free to consumers. Firms pay a case fee for each complaint referred, which is why the service is impartial and independent.
How long does an Ombudsman case take?
Straightforward cases resolve in 3–6 months. Complex investment and SIPP cases can take 12–24 months depending on evidence and any appeal to an Ombudsman decision after the initial adjudicator view.
Can I go to court after the Ombudsman?
You can reject the Ombudsman's final decision and sue instead, but if you accept the decision it becomes legally binding on the firm — and you cannot then start court proceedings for the same loss.