A judge has rejected Adviser Alliance’s application for a judicial review of the lack of a long stop for financial advisers.
Lord Justice Burnton refused to grant permission for the application last week at the High Court in London.
The application centred on a complaint the Financial Ombudsman Service accepted despite the fact the advice pre-dated the creation of the FOS and was given over 15 years previously.
Adviser Alliance and its legal team argued Treasury legislation required the FOS to “take into account” how the previous ombudsman would have acted. It argued the complaint would have been rejected because it would have been time-barred by the 15-year long stop which was then in existence.
The FOS claimed the application was “misguided”.
The application was initially rejected at the High Court in June last year and again at an appeal before another High Court judge in October.
The application has been funded by Adviser Alliance member subscriptions, a conditional fee arrangement with the body’s solicitors and “after the event” insurance.
Forty Two Wealth Management partner Alan Dick says: “If an adviser has acted in good faith and followed the rules, he should not be punished years down the line.”