Park House Financial Services partner Richard Davis says Barclays’ advice to unsophisticated investors to transfer savings into the fund, which has received widespread media coverage since it was revealed in Money Marketing in April, is bringing the financial services industry into “disrepute”.
Barclays advised clients approaching or in retirement to transfer 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.
The bank has admitted it erroneously categorised the fund as balanced rather than adventurous between July and November 2007.
Davis says he knows of a large number of investors who have submitted complaints to the Financial Ombudsman Service and he expects many more to follow suit.
In the letter sent to the FSA, Davis says: “I believe that Barclays must acknowledge that they had a duty to report the fund’s reclassification in 2007 to all investors in the fund and compensate those who have lost out through their failure to do this.
“The Financial Ombudsman cannot and should not be expected to answer all these complaints individually. I believe a ruling from yourselves on this matter would help to resolve it promptly.”
The FSA refused to comment on the issue.