A former DBS IFA has won an out of court settlement from Sesame after the network accepted a complaint against the adviser, compensated the client and charged him for it despite having lost his files.Two weeks after taking the action, the network then found the files, which the IFA says prove that he did not missell the endowment mortgage. However, the company refused to refund the 5,422 that it had already taken from his commission account until now. Former network member Richard Stock sold his cli- ent an endowment policy in 1988. The client later contacted DBS claiming that the policy was a missale. The company paid out a total of 5,422 to the client in June 2004. Stock challenged the decision, asking how the network could find in favour of a client whose files they had not seen. However, his commission accounts had been debited the amount without Sesame checking the files. Stock says two weeks later, the network contacted him to say that they had found the files, which he claims contained sufficient fact-find and reasons-why documentation to justify the sale. He says it took Sesame six months to reply to his complaint, at which point he threatened the network with legal action in the small claims court if they did not return the money. Last month, two days before the court case, Stock says he received payment in full, including legal costs and interest, totalling 5,900. Now a group of five former members, who are known to Stock, say they are considering a class action to challenge a clause in the DBS contracts which they believe allows Sesame to put too much of a burden on advisers. Stock says: “Perhaps if everyone that was owed money by Sesame would take them to the small claims’ court, the network might start behaving.” Sesame media relations manager Jared Aitken says: “We were right to uphold this complaint but we have taken a commercial decision to settle the case as we did not believe it merited the costs of litigation in this particular instance.”
Standard Life is offering advisers the chance to commission their own piece of art from a young artist. The firm is sponsoring Braveart 06, a showcase for Scottish student artists to be held in the Atlantis Gallery, Brick Lane, London from September 21-24. The winning entrant, chosen at random, will be given 1,500 to commission […]
David Hollingworth finds introductions at parties somewhat difficult. When the question, “What do you do?” crops up, Hollingworth find his response of “mortgages” tends to send people running for the door.
Cofunds, Fidelity FundsNetwork, Skandia, Selestia and Standard Life have joined forces to form the UK’s first representative Platform Committee.The committee has been created to develop industry-wide standards for consumer, advisers and fund providers and will involve input from the Investment Management Association.The Platform Committee will represent the sector and review and improve industry processes and […]
UK pension deficits showed a monthly increase of 10bn in August according to analysis by Aon Consulting.The research showed the increase was mainly due to a small decrease in bond yields over the month, with corporate bond yields falling from 5.1 per cent to 5 per cent and gilt yields falling from 4.4 per cent […]
The latest figures from the Department for Work and Pensions illustrate that sickness absence is still a major cost to businesses, with an annual bill for sick pay and associated costs to employers of £9bn. This paper from Jelf Employee Benefits looks at the importance of recording sickness absence for any employee health strategy and how this can be carried out in an efficient manner to reduce absence, improve employee engagement and drive up profits.
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Claims management companies must be more specific on separate permissions and competency when they under the remit of the FCA, according to HM Treasury. Under rules proposed in the Treasury’s latest consultation paper, claims management companies will operate under six sectors – housing disrepair, industrial injuries disablement benefit, personal industry, financial products and services, criminal […]
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