View more on these topics

Compensation free-for-all

At the end of a meeting to discuss a new remortgage and existing endowments, I asked a client what had brought about her complaint regarding the endowment advice as her policies were on target and she has been happy with our advice in the past, as confirmed in her complaint letter. This is the client&#39s response.

A colleague at work told her that there was an endowment compensation fund and that he had just received £12,000

The colleague gave her a copy of letter he had used and encouraged her to complain She thought, well if there is a fund for this, why shouldn&#39t I claim and sent the letter of complaint to us.

I asked her if she was aware of the risk that the endowment maturity was not guaranteed and depended on future investment performance and she said she was but “you don&#39t really think about that, do you?”

I asked if she had thought about the complaint in terms of who and what she was claiming about and she said she was not complaining about the advice we had given her as she had always been happy with that, feeling we had always advised her well and she had been ahead of the game on mortgage advice and she had made that clear in her letter.

I asked if she had any information about her colleague&#39s adviser and she said she thought he was on his own. I ventured that perhaps he was no longer trading and the fund referred to is the Financial Services Compensation Scheme set up for clients of firms no longer trading and funded by a levy on every firm in the industry.

I explained that, far from there being a fund to meet claims, we would have had to pay compensation if her claim was upheld.

As the client is a professional person, I asked her how she would feel if a member of the public made a complaint about her, questioning her professional competence and setting in motion an investigation

The client apologised and said she had not realised as she just thought that there was a fund that she was entitled to claim against.

BMG Williams


The Donnellsons Partnership


Personal Touch gets network go-ahead

Non-regulated network Personal Touch Insurance has been granted IFA network status by the FSA and is now looking to become the “Tesco of the financial services industry”.It describes the move as the “final piece in the jigsaw” of its plans to offer intermediaries access to a financial supermarket with a wide range of regulated products, […]

Sofa&#39s view

So, the child trust fund details have been announced. At last. I suppose October 28 could be loosely described as falling in the “summer of 2003” (when details were promised).If we forget about the £250 Government payment (£500 in some cases) and the future payment at age seven, we can concentrate on where advisers may […]

Market Harborough Building Society – 2 Year Fixed 3.50%

Type: Fixed-rate mortgage Fixed term: Two years Fixed rate: 3.50% Minimum loan: £30,000 Maximum loan: Up to 90% of valuation subject to a maximum of £500,000 Income multiples: Up to 90% of valuation &#45 three times principal incomeplus second or 2.5 times joint. Up to 75% of valuation &#45 3.25 times principal income plus second […]

FSA and Treasury were warned in 2001 of structured dangers

At least one major IFA urged the FSA to launch an immediate review of structured products and the way they were marketed as early as October 2001.Kerry Nelson, who was at the time an adviser with IFA Deep Blue, wrote to Ruth Kelly, then Treasury Economic Secretary, the DTI and the OFT, warning of the […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm