Barclays bows to pressure to pay out on Aviva fund
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Barclays has agreed to fast-track the backlog of complaints currently with the Financial Ombudsman Service over its sale of the Aviva global balanced income fund and has promised to accept all adjudications, Money Marketing understands.
In April 2009, Money Marketing first revealed that Barclays advised cautious clients approaching or in retirement to transfer their long-term savings into the single specialist fund.
The value of the fund plunged by almost 50 per cent in the 12 months to March 2009 and the bank admitted it erroneously categorised the fund as balanced rather than adventurous between July and November 2007.
Money Marketing understands that Barclays is working with the FOS to clear the backlog of complaints and has promised not to contest any of the compensation awards the FOS offers to consumers.
Money Marketing has been mounting pressure on Barclays to compensate consumers for over 15 months and the cause was subsequently taken up by the national press.
The FOS is expected to start sending out letters to complainants today and a source close to Barclays says all investors should have received their compensation within the next three weeks.
Earlier this week Barclays issued an apology to investors when scores of elderly clients who had lost hundreds of thousands of pounds after taking advice from the bank marched on Parliament to rally support from MPs.
A Barclays spokesman says: “We are sorry for the stress experienced by some of our customers who invested in the Aviva funds.
“It is clearly evident that in some instances relating to these funds, we have failed to meet the high standards that our customers expect from us and for this we are sorry.”
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Readers' comments (9)
Evan Owen | 23 Jul 2010 4:28 pm
How about the rest of the poor souls going back to 'A' Day?
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Tom IFA | 23 Jul 2010 4:33 pm
FSA's first suspension?
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Rod | 23 Jul 2010 4:35 pm
And the FSA, want to give IFA distribution to the banks!!!
Retail re-distribution review RRR
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Anonymous | 23 Jul 2010 4:40 pm
It will be intersting to see if the FSA investigate Barclays for the poor advice or will they again let a Bank off the hook.
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Leslie Squires | 24 Jul 2010 6:20 am
Taken from a recent Barclay Bank Advertisement;
"It's not just about the benefits, although you'll enjoy great bonus potential, private healthcare, childcare savings, and a huge range of employee discounts. Our training and career opportunities mean you can go as far as your abilities allow"
wink, wink, nudge, nudge, know what I mean sport!
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Chris F | 26 Jul 2010 11:44 am
I wonder if an IFA had flogged a misrated fund by the bucketload to pensioners if he/she would have been given such an easy ride by the FSA?
I think said IFA would now be out of business.
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Chris F | 26 Jul 2010 11:44 am
I wonder if an IFA had flogged a misrated fund by the bucketload to pensioners if he/she would have been given such an easy ride by the FSA?
I think said IFA would now be out of business.
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John Whipple | 26 Jul 2010 12:36 pm
Well done MM.
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Julian Stevens | 27 Jul 2010 6:35 pm
No sign of one of Hector's Hatchet Squads scurrying across Canary Plaza to their neighbours at Barclays' HO.
Probably, it was all settled amicably over after-dinner drinks down at the club.
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