View more on these topics

FCA ‘naive’ to dismiss advisers’ FOS concerns

Advisers have slammed claims by FCA technical specialist Rory Percival that differences between the regulator and the Financial Ombudsman Service are a “myth”.

Speaking at an Institute of Chartered Accountants of England and Wales conference this week, Percival said the issue of FOS decisions which go against FCA rules is often raised with the regulator.

But he said: “I am not convinced that the incidence of these differences is as significant as is often made out.

“When I talk to people about cases that have supported that view, the difference isn’t necessarily there. I think messages can get round and people can interpret adjudications to take a wider view.

“There is the potential for the myth to have been built up and I am unconvinced that this is as much an issue in reality as it is in perception.”

Informed Choice executive director Nick Bamford says: “I have seen several instances of FOS decisions which are inconsistent with FCA rules, one of which where the adjudicator failed to understand the rules on unregulated collective investment schemes.

“The FCA should recognise that FOS decisions are made by people without our qualifications and often with little understanding of industry issues.”

Philip J Milton & Company managing director Philip Milton says: “To say this scenario does not exist is naïve. The FCA should have the power to look at questionable FOS decisions.”

Percival also said that shorter and more personalised suitability letters could help advisers defend complaints to the FOS.

Earlier this month, Percival said suitability letters were too long and geared towards defending complaints rather than client engagement.

He said many advisers have since argued they need to include lengthy information because of the FOS.

But he said: “If your letter is personalised to the individual client, that is going to be contemporaneous and personal information that the adjudicator will look at. A lot of adjudicators are getting reports that are generic, however, and in those situations it is easier for them to find in favour of the client.”

Recommended

John-Lawson-MM-Peach-byline.png
3

John Lawson: The feast and famine of retirement income

If you had taken £50,000 pension savings and retired into drawdown under the new rules in 1999, you would have almost run out of money by now.  Meanwhile, £50,000 invested in drawdown in 2009 would be worth over £80,000 today, even taking into account 5.7 per cent annual income received over the last five years. […]

HM-Treasury-Front-700x450.jpg

Spending watchdog hammers Treasury for losing track of tax relief

The National Audit Office has slammed the Treasury and HMRC for “not keeping track” of who uses different tax reliefs and its effectiveness. In a scathing NAO report, published today, the Treasury is accused of failing monitor the costs and benefits of tax reliefs and whether they are changing behaviour. The NAO says HMRC did […]

MM Cover 2
7

Predicting the future: Can a single investment charge work in practice?

The investment management industry is under pressure to reform cost structures following a damning report from the Financial Services Consumer Panel, which found it is failing to treat customers fairly. This week, the panel called for ­urgent reform after independent research found current cost measures are a “poor guide” to the total costs paid by […]

Otto Thoreson 700.jpg
2

ABI unleashed: Trade body slams lower pensions charge cap as L&G exits

The Association of British Insurers has lashed out at the prospect of reducing the 0.75 per cent pensions charge cap on auto-enrolment schemes as the chief advocate of a lower cap, Legal & General, leaves the trade body. In its written evidence to the Work and Pensions select committee, published this week, the ABI says […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Perhaps Mr Percival might care to make available to the adviser community a range of sample FactFind scenarios accompanied by what he considers to be satisfactorily concise letters of recommendation. Satisfactory, that is, from the point of view of all parties ~ adviser, client, FCA and FOS. That way, we might be able to glean a better idea of just what we’re supposed to be doing and how. I shan’t be holding my breath.

  2. I do not have any personal experience (thankfully) with FOS but could I suggest that if anyone does have evidence, as has been posted by several on other posts ref the “myth’ blog send this evidence to Mr P. Demonstrate to him where the FOS has ignored the FCA rules in their ruling on a complaint and bring home to him just what the FOS is actually doing. Not what he has been told by their boss what they are doing.

  3. I would also like to see some examples of where FOS have gone against FCA rules and reasons why. This debate is always rolling on, but I have never heard any relevant examples.

  4. Of late the FOS has been busting a gut to improve the quality of staff, unfortunately they are hamstrung by out of date policy and decision trees.

  5. My personal experience of the FOS, the staff are woeful incompetent and inexperienced

  6. Only ever had two cases go to the FOS and both times found in my favor, so must be doing something right.

    We did changed our suitability letters at the start of this year, having attended a FCA work shop so this is not a new concern.

    They suggested that the report should be split in to two parts. The first part should be very client friendly and very simply worded, explaining the events, what happened, what advice, why recommended and costs. The second part of the report is all the complicated warnings and explanations and so on.

    We have asked our clients their views and they like the new reports, but they did admit they where not reading the second part, which is an unintended outcome.

Leave a comment

Close

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 advice.

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

Email: customerservices@moneymarketing.com