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Apfa says CMCs remain growing IFA problem despite FOS claims

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Apfa policy director Chris Hannant

Apfa says false complaints by claims management companies is a “genuine and growing” problem after the Financial Ombudsman Service said

as many complaints against IFAs are made by other IFAs as CMCs.

In its latest ombudsman news, published last week, the FOS says IFAs refer as many complaints against other advice firms as CMCs.

A FOS spokesman says: “There is a loud minority in the advice sector who have distracted the debate on IFA complaints. Some comments are completely

inaccurate and you would think we were on a campaign to destroy all IFAs. We are going to do as much as possible to answer the concerns and questions that the average sole trader has about us.”

Apfa policy director Chris Hannant says: “IFAs are not pursuing a claim for their own gain whereas claims firms are in business to generate complaints and take a cut.

“Our primary concern is not where claims firms help clients with a genuine complaint but fraudulent and spurious claims with no evidence of an underlying policy. I still believe false claims from claims firms

is a genuine and growing problem.”

Highclere Financial Services partner Alan Lakey says: “It costs nothing for claims firms to go to the FOS so they always do because they just might win,

but if an IFA assists a client in complaining about another IFA it is normally for a very, very good reason.

“But I have my doubts that there are as many complaints brought forward by IFAs as claims firms. The FOS should give us more information and numbers.”

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