Appeals court rules FOS compensation is final

Claimants can not accept a compensation ruling from the Financial Ombudsman Service (FOS) and later claim for more in the courts, a landmark Court of Appeal ruling has decided.

Clients of advisory firm In Focus Asset Management and Tax Solutions were pursuing a top-up compensation claim for negligent advice for which the FOS had already awarded them £100,000, when the Court of Appeal threw their case out. Mr and Mrs Clark claimed in 2008 they had lost £500,000 as a result of bad advice relating to an investment in a geared traded endowment plan. The FOS' limit for compensation was £100,000 at the time, which the Clarks' were awarded. The FOS limit increased to £150,000 in 2012. Today the Appeals court decided that a complainant cannot accept an award from...