Financial Services and Markets Act 2000, section 229

Awards

Part XVI The Ombudsman Scheme

(1)F1754This section applies only in relation to the compulsory jurisdiction ....

(2)If a complaint which has been dealt with under the scheme is determined in favour of the complainant, the determination may include—

(a) an award against the respondent of such amount as the ombudsman considers fair compensation for loss or damage (of a kind falling within subsection (3)) suffered by the complainant (“a money award”);

(b)a direction that the respondent take such steps in relation to the complainant as the ombudsman considers just and appropriate (whether or not a court could order those steps to be taken).

(3)A money award may compensate for—

(a)financial loss; or

(b)any other loss, or any damage, of a specified kind.

(4)The [F1755FCAF1755] may specify [F1756for the purposes of the compulsory jurisdictionF1756] the maximum amount which may be regarded as fair compensation for a particular kind of loss or damage specified under subsection (3)(b).

F1757 (4A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)A money award may not exceed the monetary limit; but the ombudsman may, if he considers that fair compensation requires payment of a larger amount, recommend that the respondent pay the complainant the balance.

(6)The monetary limit is such amount as may be specified.

(7)Different amounts may be specified in relation to different kinds of complaint.

(8)A money award—

(a)may provide for the amount payable under the award to bear interest at a rate and as from a date specified in the award; and

(b)F1758is enforceable by the complainant in accordance with Part III of Schedule 17 ....

(9)Compliance with a direction under subsection (2)(b)—

(a)is enforceable by an injunction; or

(b)M17in Scotland, is enforceable by an order under section 45 of the Court of Session Act 1988.

(10)Only the complainant may bring proceedings for an injunction or proceedings for an order.

[F1759 (11) “Specified” means specified in compulsory jurisdiction rules. F1759]

F1760 (12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Read section 229 in the full Act → Definitions (3) Cases (25)

Definitions used in section 229

Specified

(5) “Specified” means specified in an order made by the Treasury.

Defined in s.22(5) · see it in the full Act
the FCA

(2) The Financial Conduct Authority is in this Act referred to as “the FCA”.

Defined in s.1A(2) · see it in the full Act

“the FCA” means the Financial Conduct Authority;

Defined in s.417(1) · see it in the full Act
rule

“rule” means a rule made by the FCA or the PRA under this Act;

Defined in s.417(1) · see it in the full Act

Cases considering section 229 (25)

Linear Investments Limited v Financial Ombudsman Service Limited

[2025] EWCA Civ 1369 · 29 October 2025Defines

Confirms the statutory source of the Ombudsman’s power to award fair compensation or direct just and appropriate steps following a determination in favour of a complainant. (see paras [61]; [87]) Applies the provision as conferring a broad power to include a money award or direction in a determination made in favour of a complainant. (see paras [61]; [87]) Applies the money-award power to compensation for financial loss, subject to a logical connection with the complaint established. (see paras [61]; [87]-[90]) Defines the kinds of loss or damage for which a money award may compensate, as referred to in the statutory power considered by the court. (see para [61]) Applies the financial-loss limb of the money-award power to the compensation calculation under consideration. (see paras [61]; [87]-[90])

Options UK Personal Pensions LLP v Financial Ombudsman Service Limited

[2024] EWCA Civ 541 · 20 May 2024Interprets

The award power is not confined to losses recoverable through court proceedings. It permits compensation where the complaint succeeds because of non-actionable regulation, guidance or good industry practice. (see paras [51]; [75]; [84]) Authorises a money award of such compensation for loss or damage as the ombudsman considers fair. The power extends to circumstances in which an action for damages would not lie. (see paras [51]; [75])

Clark & Anor v In Focus Asset Management & Tax Solutions Ltd & Anor

[2014] EWCA Civ 118 · 14 February 2014Interprets

The provision expressly empowers the ombudsman to award compensation. (see para [25]) Compensation awarded cannot exceed the regulatory limit, although the ombudsman may recommend payment of the balance required for fair compensation. A recommendation creates no enforceable right and does not preserve a later claim after acceptance. (see paras [25]; [69]–[70]; [115]) An accepted monetary award is enforceable as a county court judgment and creates an enforceable legal right to the amount awarded. (see para [26])

5 more judgments, and what each says about section 229, are in the case-law panel in the full Act.

Explanatory note

448.If a complaint under the compulsory jurisdiction is determined in favour of the complainant, the respondent may be ordered to pay compensation up to a maximum limit which may be set by the Authority. The limit may be different for different kinds of complaint. The Authority may specify a particular limit for compensation in respect of non-financial loss or damage. The ombudsman can only make a binding award up to the limit set by the Authority, but he may recommend a greater amount as fair compensation. The respondent may also be ordered to take steps to rectify the matter complained of, and this can be enforced through the courts by the complainant if necessary.

All the explanatory notes for the Act

Amendments and notes

15 notes from legislation.gov.uk

Amendments

  1. F1754Words in s. 229(1) omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(8)(a)
  2. F1755Word in s. 229(4) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 11 para. 5 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.
  3. F1756Words in s. 229(4) inserted (16.6.2006) by Consumer Credit Act 2006 (c. 14), ss. 61(4), 71(2); S.I. 2006/1508, art. 3(1), Sch. 1
  4. F1757S. 229(4A) omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(8)(b)
  5. F1758Words in s. 229(8)(b) omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(8)(c)
  6. F1759S. 229(11) substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(8)(d)
  7. F1760S. 229(12) omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(8)(e)

Modifications

  1. C976Ss. 228-230A applied (with modifications) (28.1.2021 for specified purposes, 30.7.2022 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2021 (S.I. 2021/90), arts. 1(2)(3), 9
  2. C980S. 229 applied (1.12.2001) by S.I. 2001/2326, arts. 1(1)(b), 7(1); S.I. 2001/3538, art. 2(1)
  3. C981Ss. 228-232 applied (31.10.2004 for certain purposes and 14.1.2005 otherwise) by The Financial Services and Markets Act 2000 (Transitional Provisions) (Complaints Relating to General Insurance and Mortgages) Order 2004 (S.I. 2004/454), arts. 1(2), 5
  4. C982S. 229(2)(a)(b) applied (with modifications) (E.W.S.) (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 73(3)-(5)
  5. C983S. 229(8)(b) applied (1.12.2001) by S.I. 2001/2326, arts. 1(1)(b), 6(4); S.I. 2001/3538, art. 2(1)
  6. C984S. 229(9)(10) applied (1.12.2001) by S.I. 2001/2326, arts. 1(1)(b), 6(5); S.I. 2001/3538, art. 2(1)

Commencement

  1. I35S. 229 wholly in force at 1.12.2001; s. 229 not in force at Royal Assent see s. 431(2); s. 229 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; s. 229 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Marginal citations

  1. M171988 c. 36.