a money award against the firm of such amount as the Ombudsman considers fair compensation for financial loss or for loss or damage of a kind specified in DISP 3.9.2 G and subject to the maximum limit in DISP 3.9.5 R; or
both of these.
Where the Ombudsman decides to make a money award, in addition to (or instead of) awarding compensation for financial loss, he may award compensation for the following kinds of loss or damage, whether or not a court would award compensation:
For the purposes of awards by the Ombudsman, financial loss includes consequential or prospective loss.
In determining, in relation to a relevant new complaint, what amount (if any) constitutes fair compensation for the purposes of a money award, the Ombudsman is required under article 7(2) of the Ombudsman Transitional Order to take into account what amount (if any) might have been expected to be awarded by way of compensation, in relation to an equivalent complaint dealt with under the former scheme in question immediately before commencement.
The maximum money award which the Ombudsman may make is £100,000.
The Ombudsman may specify in his award that reasonable interest must be paid on the award (at the rate and from the date he states).
For the purposes of calculating the monetary limit referred to in DISP 3.9.5 R the amount of interest awarded does not form part of the award itself.
The limit on the maximum money award has no bearing on any direction which an Ombudsman may make as part of a determination.
When the Ombudsman finds in a complainant's favour, he may also award an amount which covers some or all of the costs which were reasonably incurred by the complainant in respect of the complaint.
It is not anticipated that awards of costs will be common, since in most cases complainants should not need to have professional advisers to bring complaints to the Financial Ombudsman Service.
The amount payable under the award of costs may, if the Ombudsman orders, bear interest at a reasonable rate specified in the order and from a date specified in the order.
For the purposes of calculating the monetary limit specified in DISP 3.9.5 R, an award of costs does not form part of the award itself.
A firm must comply promptly with:
any money award or direction made by the Ombudsman or any award of money or other award made by an ombudsman appointed under the PIA Ombudsman scheme (including any interest payable by order of the PIA Ombudsman or the Ombudsman); and1
any settlement which it agrees at an earlier stage of the procedures.
The Ombudsman must maintain a register of each money award and direction made.