The Chartered Institute for Securities & Investment (CISI) has raised concerns with the FCA at the decision to increase the Financial Ombudsman Service’s (FOS) compensation limit from £150,000 to £350,000, as it may have “serious unintended consequences for its member SMEs”.

The Financial Ombudsman Service has expanded its remit to include more small business and claims management companies, so called ‘ambulance chasers’.

PIMFA, which represents 1,000 investment managers and financial advisers, has called on the FCA to postpone implementation of revised FOS compensation limits.

A decision by the FCA to raise the limit on Financial Ombudsman Service compensation claim awards to £350,000 has been branded “shocking” and “counterproductive”.