Court of Appeal Confirms Finality of FOS Awards

    View Author February 2014

    The Court of Appeal Brings into Focus the Finality of Financial Ombudsman Service Awards

    The financial services industry was rightly very concerned by the High Court’s decision in Clark v In Focus Asset Management & Tax Solutions Limited in 2012.

    In summary, the High Court had ruled that the acceptance of an award from the Financial Ombudsman Service (“FOS”) did not prevent a complainant from then bringing Court proceedings to claim the balance of the loss from a firm, where that loss exceeded the FOS’ statutory maximum award of £100,000 (now £150,000).

    In a very welcome decision handed down by the Court of Appeal on 14 February 2014, the Court overruled the High Court’s decision. This means that a complainant cannot now accept financial redress from a firm via the FOS and then pursue the firm in Court for further compensation in respect of the same complaint.