Those that have lost out due to poor advice or service from pension firms, insurance companies and financial advisers will be able to claim significantly more compensation from April 1.
City watchdog the Financial Conduct Authority (FCA) has confirmed it is pressing ahead with its proposal to more than double the amount of compensation that can be claimed by consumers and businesses through the Financial Ombudsman Service (Fos).
From the start of April, the current £150,000 limit will be raised to £350,000 in line with a proposal put forward in October last year.
For complaints made for events prior to April 1 but referred after April 1, the limit has been raised to £160,000.
Robin Beer, of Brewin Dolphin, a wealth manager, said that increasing the compensation limits could help to improve the negative perception of the financial services.
“Importantly, it could encourage people to invest and save adequately for their futures,” he added.
In the future, both of these limits will automatically rise in line with inflation every year.