The three watchdogs have a joint complaints scheme under the Financial Services Act 2012.

The Financial Regulators Complaints Commissioner scheme handles gripes about the regulators and the way they have handled complaints, rather than complaints against regulated firms.

The regulators have finalised a revised scheme for those who have complaints against them, with the new scheme coming into force from November.

Under the scheme the regulators will make a discretionary payment in recognition of financial loss if they have made a clear and significant error and they are the sole or primary cause of that financial loss.

Having received negative feedback in its consultation, the regulators have removed the proposed £10,000 compensation limit relating to a financial loss.

They have also increased the levels of discretionary compensatory payments for non-financial loss and provided more clarity on eligibility. The appropriateness of these levels will be reviewed every 2 years.

The regulators said these changes balanced the statutory immunity of the regulators provided by Parliament against the need to make compensatory payments when at fault.

However, the regulators added that while the limit has been removed, most payments made under the scheme are expected to be modest.

The new scheme will apply from 1 November, with complaints made prior to this date being considered under the existing scheme.