View more on these topics

Defence union in onslaught at ‘unnatural justice’ by FOS

The IFA Defence Union has made a scathing attack on the Financial Ombudsman Service, suggesting the organisation works “contrary to fair play and common sense”.

Its submission says the FOS has wide powers of interpretation, unlike the legal system, and applies subjectivity to all areas.

It says: “This subjectivity, which Walter Merricks refers to as ‘natural justice’, provides for plentiful instances of ambiguity and contradiction. In reality, it might better be termed unnatural injustice.”

The IFADU proposes the introduction of an up-front refundable deposit that would be repaid to consumers if complaints are upheld.

It says: “Such a deposit system will serve to deter the opportunistic or vexatious complainant as they will not realistically be expecting to win or to receive redress.”

It is also disgruntled with the lack of assistance available for advisers who may not be familiar with the ombuds-man’s procedures. “Complainants are assisted with their complaints, whereas firms, particularly retired individuals who may have been outside of the financial services arena for many years, are left to stumble through the intricacies of the Disp rules and FOS processes.”

The IFADU says all adjudications should be in the public domain, with the names of the firm and consumer removed, to enable stakeholders to judge FOS justice in action and form their own views as to the worth of the organisation.

Recommended

Five per cent of people have lied on protection applications says Friends

Five per cent of people have lied on protection applications and one in five people do not read all the terms and conditions before they sign up according to Friends Provident.Friends surveyed 2071 people and found 54 per cent believed dishonest applicants should not be paid any benefits if they needed to claim. Fifteen per […]

Out for the discount

The Northern Rock debacle and credit crisis have had a knock-on effect in the investment trust sector. Investment trust shares trade independently from their net asset values. The direction of prices is linked more to supply and demand than the performance of the underlying assets.

Collins Stewart takes UK focus

Collins Stewart has brought out the UK focus fund, a Dublin-based Oeic investing in strong UK businesses that are undervalued at the time of investment.

UK housebuilders remain a value trap – despite post-Brexit falls

Despite the sharp drop in housebuilders following the Brexit result, valuations in the highly illiquid market are still at elevated levels. And whilst some investors may take comfort from superficially low price/earnings multiples, are earnings sustainable over the long term, asks Holly Cassell, Assistant Manager of the Neptune UK Mid Cap Fund. Click here to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment