Adviser calls for FSA ruling on Barclays

An adviser fighting for compensation for Barclays clients who lost money in the Aviva global balanced income fund has written to the FSA urging it to review the issue under its wider implications regime.

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.

Recommended

Pension poll position

The YouGov/Money Marketing monthly IFA survey shows almost a 50/50 split regarding the issue of whether the Government’s Budget decision to cut pension tax relief for people earning over £150,000 will significantly damage long-term savings.

IFAs are doing it for themselves

IFAs are increasingly looking to develop their own wrap propositions rather than use an existing provider, according to Platforum managing director Holly Mackay.

Expats are urged to bypass commission-heavy bonds

Expats may be better bypassing commission-heavy investment vehicles in favour of platforms when setting up a qualified recognised overseas pension scheme, according to AES International.

Thumbnail

Case study: administration — managing group life schemes

Our client leads the global market in high-tech electronics manufacturing and digital media. The trustees of the company’s final salary pension scheme insure death-in-service lump sum and dependants’ pension death benefits for active employees, as well as dependants’ pension benefits for deferred members (those who have left service).

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Julian Stevens 28th May 2009 at 11:32 am

    Adviser calls for FSA ruling on Barclays
    The FSA usually refuses “to comment on individual cases” but now, it seems, the FSA simply declines to comment on anything it pleases. But this is a hot potato and evidently quite a tricky one for the FSA ~ how can it possibly deny that it should come down on Barclays like the ton of proverbial hot bricks? What’s it waiting for? If an IFA firm had done something similar, you can bet your boots the FSA would have no such reservations, least of all about offering comment from someone like Margaret Cole, reassuring the world as to what a tough and decisive regulator the FSA is. Unfortunately, the FSA is also widely perceived to be an extremely biased and selective regulator which is unhealthy in the extreme. As usual, one set of rules for the banks but quite another for the IFA sector.

Leave a comment