In a recent decision on two linked cases (Bunney v Burns Anderson Plc & Anor and Cahill v Timothy James & Partners Limited), the High Court held that the Financial Ombudsman Service may not make a binding award requiring a redress payment in excess of £100k. The FOS had ordered that the firms involved pay £228,055 and nearly £2m respectively, but the High Court found that the FOS is not empowered to require a firm to make a payment in access of the statutory cap of £100k.

The next review of the £100k cap is due to take place in 2009. In light of the High Court’s decision, the FOS may well seek to increase the statutory cap.