The IFA Defence Union has formally applied to the High Court for a judicial review against the Financial Ombudsman Service for allegedly breaking European human rights law.The application was made in person last week by ATE Risk legal risk analyst Andrew Wesson, who will organise the underwriting of the union’s case if it reaches judicial review. The case rests on the union’s contention that the FOS has breached Article 6.1 of the Human Rights Act by not allowing advisers a right to the 15-year long-stop defence under its dispute resolution rules. The judge has three months to decide whether to grant a judicial review. If a review is not granted, the union has a right to an oral hearing to state its case. The IFADU says it will mount a challenge in the European Court of Human Rights in Strasbourg if it exhausts all domestic legal avenues. Wesson says he believes the IFADU has a very strong case and is confident of a positive decision from the courts. He says: “It is sad that IFAs do not have a valid and robust avenue for appeal against FOS decisions while paying so much money in fees. “If we are successful with the claim, the implications are huge for the way the financial services industry is set up and will affect everyone from the Treasury and FSA down to individual advisers.” FOS spokeswoman Emma Parker says: “We are a publicly accountable body and it is right that firms have the ability to appeal for a judicial review if they believe they have an appropriate case. It is up to the courts to decide what happens next.”
The Financial Services Compensation Scheme compensates customers of insolvent financial services firms. It gives customers confidence that most of their capital is secure and so helps encourage saving and investment. It has a small staff and resolved nearly 26,000 cases last year.
The Liberal Democrats want to axe higher-rate pension tax relief and end forced annuitisation at age 75. In the party’s Tax Commission proposals Shadow Chancellor Vince Cable set out plans for a fundamental reform of the tax system last week under the slogan, Fairer, Simpler, Greener. Cable says it is particularly difficult to defend higher-rate […]
UCB Home Loans has become the latest lender to up it rates following the base rate rise two weeks ago.The lender will increase its variable rates by 0.25 per cent for both new and existing borrowers from September 1. This follows the decision to increase the base rate from 4.5 per cent to 4.75 per […]
Positive Solutions National Partner Forum is to take place on 28 September at the Birmingham International Convention Centre.As well as inviting its 1200 adviser partners Pos Sol is offering places to 200 advisers from outside the firm so they can learn more about the company.Pos Sol chief executive Neil Johnson says: This is a strong […]
‘Work like a dog day’ recognises the hardest-working people. On this day, employers show their appreciation for all of their employees who carry the heaviest workloads.
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Offsetting the cost of advice this way would benefit clients and advisers alike One of the multiple barriers to better take-up of financial advice is that some people are unwilling or unable to meet the upfront cost. In response to this, the government has allowed people to take small chunks (three lots of £500) out […]
Fund managers like to trade off having a unique style. There thousands of funds out there to choose from – the question I often hear from advisers is: what makes this person different? Sometimes this can be a really tough one to answer. “We invest for the long term” is all fine and good, but […]
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