How ombudsman decisions work

The usual stages

Schemes such as OBSI in Canada and the RBI Ombudsman in India take a complaint only after the firm has had a chance to respond ^7,8. At the UK Financial Ombudsman Service (FOS), an investigator asks the business for its side and considers the information fairly and impartially ¹. If the consumer or the business does not accept the investigator's answer, either can ask an ombudsman to review it. The ombudsman then issues a final decision ¹.

The FOS said on 21 May 2026 that it resolved more than 220,000 cases in 2025/26, and a quote in the same release refers to over 224,000 complaints ⁵. The release does not give the split between investigator outcomes and ombudsman decisions.

When a decision is binding

In the UK, section 228 of the Financial Services and Markets Act 2000 says a complaint is decided by what the ombudsman considers fair and reasonable in all the circumstances ². The ombudsman gives a written statement with reasons and asks the complainant to accept or reject it. If the complainant accepts, the determination is binding on the respondent and the complainant and final ². A complainant who does not respond by the set date is treated as having rejected it ². The FOS warns that accepting compensation may mean the consumer cannot take the business to court for the same complaint ¹.

In Canada, OBSI's 2024 annual report says its recommendations are not binding, meaning firms do not have to follow them ⁶. The report states there were no refusals by any participating firm of an OBSI recommendation in 2024 ⁶. OBSI must make a final written recommendation within 120 calendar days after receiving the information it needs ⁷.

In India, the complainant must send the regulated entity a letter accepting an award in full and final settlement within 30 days of receiving it, or appeal. The entity must then comply within 30 days of the acceptance letter, or appeal where permitted ⁸. In Ireland, FSPO decisions are legally binding on both parties, and providers must carry out any direction if no appeal is made ¹⁰.

Award limits

The FCA Handbook sets the base limit. DISP 3.7.4R gives £350,000 for a complaint about an act or omission on or after 1 April 2019 and £160,000 for one before that date. On 1 April each year both amounts are adjusted by the rise in CPI since January 2019, rounded down to the nearest £5,000, for complaints referred from that date up to and including the following 31 March ¹¹. The FOS publishes the resulting limits, shown in the table with the referral period each covers ³.

Above the UK limit, the FOS can recommend that the business pays more, but the business does not have to accept that recommendation ³.

Appeals and challenges

• UK: the statute makes an accepted determination final ².
• India: the complainant, or the regulated entity with prior sanction, can appeal to the Appellate Authority within 30 days, with up to 30 more days for sufficient reason ⁸. In 2024-25 the Appellate Authority received 104 appeals and disposed of 53. It decided 13 for the complainant and 3 for the regulated entity, upheld the Ombudsman in 15 and recorded 22 as withdrawn or resolved ⁹.
• Ireland: the only route of appeal is to the High Court. Decisions under appeal are not published until the appeal ends ¹⁰.
• Canada: OBSI recommendations are not binding, so a firm may decline to follow one ⁶.

Published decisions

The FOS decisions database holds all final decisions published since 1 April 2013. They are written so that the person or small business complaining cannot be identified ⁴. The FOS says the decisions are not a definitive statement of the law or of its approach, as each case is decided on its own facts ⁴.