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Euro rights may double the cost of complaints

IFAs could see the cost of dealing with complaints double when a European

directive becomes UK law.

The LIA says the cost of the complaint procedure could soar to £1,500

because the European Convention of Human Rights gives everyone the right to

a hearing.

It says IFAs will have to set up and pay for the infrastructure to hear

complaints. The handling of complaints is currently a deskbound process.

The Financial Ombudsman Service says the right to a hearing applies to

firms as well as individuals, which could see costs rise across the


But the ombudsman is playing down the possible impact on IFAs, saying many

consumers will not stand up and put their cases in court. The Human Rights

Act comes into force in the UK this year.

LIA public affairs director John Ellis says: “As well as increasing the

cost of the complaint procedure, an expense which is borne by the firm, the

convention means IFAs would have to set up a whole infrastructure too.”

Financial Ombudsman Service spokesman Iris Baker says: “The right could

result in an increase in costs but we are not sure what the take-up will

be. In our experience, individuals prefer the informality of the current



Julian Gibbs

Over the longer term, well-managed smaller companies investment trusts andunit trusts usually outperform their bigger company equivalents.Over the past five years, UK smaller companies unit trusts have gone up onaverage by 142 per cent against a rise of 103 per cent for the UK allcompanies sector and 79 per cent for the UK equity income […]

Zifa apppoints protection marketing director

Zurich IFA Group has appointed Kevin Pearce as its new protection marketing director. From this month Pearce will take over from John Ravenscroft who has retired. Pearce, 41, has 23 years experience at Allied Dunbar. Zurich is hoping Pearce will strengthen its relationship with IFAs.

Thousands face exclusion from stakeholder

Pension experts warn the Government risks excluding a huge chunk of itsfive million stakeholder target market through its new regulations.They claim that hundreds of thousands of employees could miss out onpension provision because their employers have become exempt fromstakeholder as they have an occupational scheme.But because the employee had previously refused to join the scheme, […]

Japan bull runs out of steam

Japan has been a source of good profits for investors in the past year.But it has all come crashing down again in the latest of manydisappointments for investors, who have waited 10 years for Japan&#39sstockmarket to recover.One wonders how long it will take for the Nikkei to get back up to 39,000,the level reached at […]

Passport - thumbnail

Thinking of expanding overseas?

Whether you’re a small company or an established larger employer, expanding overseas into emerging markets can be an extremely attractive prospect for growing your business. However, with this comes a duty-of-care requirement to any staff based overseas.


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