Ombudsman's increased award limit will impact regulated firms
A professional indemnity expert has challenged the Financial Services Authority’s (FSA) claim that the Ombudsman’s increased award limit would not impact regulated firms.
The FSA argued that an increase in the maximum award limit from £100,000 to £150,000 would only have a minimum effect upon authorised firms as the number of cases where the award exceeded the current limit was minimal.
However, this claim has been rubbished by a professional indemnity insurance specialist who has argued that as awards at the top end of the market increase so too will those claims at the lower end and as payouts increase so too will the professional indemnity premiums that
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