Retired IFA suing FSA for harassment
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A retired IFA is suing the FSA for harassment after a 10-year battle with regulatory bodies which has seen the Financial Services Compensation Scheme reprimanded for bullying and the Financial Ombudsman Service reproached for soliciting complaints.
John Calland, who retired as principal of Calland Insurance and Mortgage Services in December 1997 and is now 72, sold the firm to his son in 1997, who went bankrupt in March 2000.
In April 2001, the FSCS started making requests for details of his financial assets and liabilities off the back of preliminary loss assessments, without any investigation of the advice given.
When Calland did not supply the details after repeated requests from the FSCS, which continued until late 2004, it threatened him with possible imprisonment and a fine.
An email from the FSA to the FSCS in October 2002, obtained through a freedom of information request, shows the FSA knew it could not force disclosure.
It says: “The circumstances surrounding Calland do not justify an investigation into his resources (as Calland has not actually done anything ’wrong’).”
However, in December 2002 and again in February and April 2003, the FSA contacted all 287 former CIMS pension clients saying they might be eligible for compensation and asked them to complete a questionnaire.
When Calland refused to disclose his finances to the FSA, it passed its files to the FOS, which sent partly completed complaint forms to a number of Calland’s former pension clients. The FOS progressed four cases against Calland, even though no clients complained to him.
In June 2006, the FSCS Independent Investigator Richard Irwin found the FSCS’s behaviour amounted to “bullying”.
In December 2006, the FOS Independent Assessor Michael Barnes concluded that the FOS solicited the four pension complaints, however, the FOS has continued to progress them.
Calland says: “I want the FSA and its agents to be held accountable for 10 years of harassment but more than anything I want revealed what incredible and intractable prejudice I have come up against from the regulatory agencies.” He is being represented by Hugh Tomlinson, QC. The FSA has submitted a one-off application for a strike-out, which will be heard at Exeter county court on September 26.
The FSA, the FSCS and the FOS declined to comment.
For more details of the 10-year battle click here.
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Readers' comments (52)
Martin O'Kelly | 11 Aug 2011 10:07 am
What a dreadful story - poor man. The various agencies should be ashamed.
Good luck with the journey.
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Simon Webster | 11 Aug 2011 10:14 am
The lack of FSA accountability has been highlighted in these forums many times. The abuse of power by those in authority is frankly terrifying.
What makes me incredibly angry is that "these people" seem to believe they have done nothing wrong.
Let us all hope and pray that the FSA gets a really bloody nose on this one. They sure as hell deserve it.
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Anonymous | 11 Aug 2011 10:14 am
Good man, the FSA are of the lowest order
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Patrick Schan | 11 Aug 2011 10:18 am
I will admit my ignorance of what a "strike-out" is. Can anyone enlighten me?
Apart from that I really hope this guy succeeds, as will almost every IFA. This sounds, to me, like disgracefull harrasment of, let's face it, an elderly person throughout their retirement. In my opinion heads should roll for this.
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Old Dog | 11 Aug 2011 10:22 am
Utterly disgusting.
The aparachiks who carried on harrassing this man are worse than dog filth.
I do hope Mr Calland will keep us updated with his news. It's something that we need to have ventillated in public.Truly I hope you win, Mr C.
More power to you.
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frank rocks | 11 Aug 2011 10:24 am
What totally digusting behaviour from from the FSA and it's band of fellow bullies
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Jerry | 11 Aug 2011 10:25 am
What an appaling indictment of so called regulation. Yet again it is obvious 'treating customers fairly' only applies one way! If an IFA applied the same tactics to a client there would be fines flying left right and centre! I wish John every success in his fight.
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hugh Jeego | 11 Aug 2011 10:27 am
This could lead to a "Class Action" as I do not think for one moment that this is a one off case. You cannot pass this off as institutional regulatory vigour. This is approaching financial assasination. Good job the FSA is above the law eh?
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Anonymous | 11 Aug 2011 10:30 am
Absolutely mind boggling, who the hell do they think they are. they have always been a law unto themselves beyond reproach and bloody minded. I feel so sorry for this gentleman maybe we can gather the big society approach to ending this reign of terror dished out by the FOS, FSA.
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Paul Nash | 11 Aug 2011 10:31 am
I was going to suggest that Mr Calland complain to his MP, but of course, the FSA is not accountable to Parliament, or any other elected chamber.
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