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FCA survives complaint that IFA treatment caused client loss

FCA building FCA feesThe FCA has been cleared in a complaint alleging the way it treated an IFA and another firm had caused a client loss.

The complaint was original bought in December 2015, and alleges that the FCA knew about problems at the IFA and other firm for nearly 10 years but had not told clients and had “concealed” the misconduct.

The complainant took over the client, an elderly woman who they claim received bad advice to take out a home income plan, with the funds then placed in a bond and withdrawals meaning that her sole asset is based on an increasing loan.

The complainant also said that the FCA was aware that the IFA and other firm had not stumped up their Financial Ombudsman Service compensation payments and had no insurance cover, but still did not amend its entries on the FCA register or serve it with a final notice.

The complainant was looking for the FCA’s help to retrieve client files from the IFA and other firm to launch a legal claim, and wanted the FCA to admit it should have provided these, as well as pay compensation for acting in “bad faith”.

While the FCA acknowledged a link on its register to a decision notice could not be viewed because it was broken, the complainant was still unsatisfied and referred the case to the Complaints Commissioner.

While the Complaints Commissioner did not uphold complaints regarding the alleged “obstructive and defensive” way the FCA communicated and that it “cherry-picked” issues to investigate, he recommended that £100 be paid in compensation over the “distress and inconvenience” caused by delays in handling the complaint.

The FCA says in a statement: “We note the Commissioner has not upheld the complaint, but has recommended a payment of £100 to the complainant for the length of time it took to complete the investigation, which we accept.”


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  1. Why do people even bother to escalate Complaints to the Commissioner? They will never turn against the FCA even if they didn’t act as they should. I don’t believe they acted in bad faith, they just simply don’t care enough.

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