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62% Of advisers say scrap fees for innocent firms

Nearly two-thirds of advisers want to scrap case fees for firms found innocent of complaints and are prepared to pay more if found guilty, according to a Money Marketing poll.

The survey gauged advisers’ views on two alternative funding proposals which were rec-ently tabled by the Financial Ombudsman Service.

The FOS is asking firms whether they would prefer a new model to replace the current funding system which imposes a levy and charges a £360 case fee for firms after an allotted two free cases, even if the adviser is found innocent.

Sixty-two per cent of IFAs voted in favour of only levying case fees from guilty firms, which would push fees up to over £1,000 a case but spare innocent firms.

Only 13 per cent of advisers want to scrap case fees alto-gether and pay a 100 per cent levy despite warnings of spiralling levies caused by rogue firms using the ombudsman as a cheap way of outsour- cing complaints.

Twenty-five per cent of firms opt to stick with the much criticised current system.

Aifa director general Chris Cummings: “It goes against the grain of justice for firms that are completely innocent to have to pay a hefty fee. We are consulting with our members.”

IFG Financial Services financial planning strategist Donna Bradshaw says: “A higher case fee for guilty firms could also act as a preventive measure against misselling.”

FOS spokesman David Cresswell says: “It is reassuring to see firms engaging with the decision-making process.”


HSBC merges funds into 1bn portfolio

HSBC Investments has mer- ged its three core UK equ- ity funds to create the 15th-biggest UK all companies portfolio. The company’s 413m British fund, 157m household names fund and the 518m growth and income funds, which are all run by Bob Morris, are being merged to create a flagship 1.15bn growth and income fund. […]

Cofunds appoints head of strategic development and marketing

Cofunds has appointed Anthony Wolfe from BNP Paribas as head of strategic development and marketing. Wolfe was responsible for business development at BNP from 1994 to 2005 and joins Cofunds to help the platform evaluate market opportunities and shape its strategic direction. He will also have director responsibility for marketing and fund manager relations. Wolfe […]

Let’s put our house in order

As we are subjected to more and more reality TV shows, how long will it be before members of the financial services industry are put in a house for 10 weeks to sort out some of the mess that exists?

Fidelity FundsNetwork appoints insured propositions head

Fidelity FundsNetwork has appointed Nic Burton as head of insured propositions.In his most recent role at Scottish Widows he managed the savings and investment products for the UK IFA market, as well as structured and guaranteed products through the bancassurance channel at Lloyds TSB.Burton will report to head of FundsNetwork David Dalton-Brown. He will have […]

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Preparing for the changes to the pensions market

As more and more providers start to reveal their stance on the charge cap and removal of commission and active member discount pricing, we thought it would be worthwhile to look at what these are, and the steps businesses should be taking to prepare for this.


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