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FOS: As many IFA complaints come from IFAs as claims chasers

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The Financial Ombudsman Service says it receives as many IFA complaints from other IFAs as it does from claims management companies.

In its ombudsman news, published yesterday, the FOS says it is unable to give audited statistics until next month but wants to indicate where complaints are made.

It states: “For cases involving IFAs and smaller businesses, as many disputes are referred to us by other financial businesses as they are by claims managers.”

Some IFAs are also claims firms and while the Ministry of Justice does not have up-to-date figures for the number of claims firms also FSA-regulated, in February 2012 it stood at 210.

Ombudsman news also revealed that four of 10 disputes are referred to it by businesses and six out of 10 by consumers

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. With one big difference I’ll bet – the complaints from IFAs are not spurious and are probably based on just cause and a robust rationale. Additionally if IFAs charge clients at all for this service I’ll also bet that these charges are a fraction of what a CMC would levy.

    So FOS let’s have a little more detail. How many IFA generated complaints are upheld when compared to CMCs?

  2. One conclusion might therefore be that IFAs are a better regulator of IFAs than the FSA/FCA.

  3. “For cases involving IFAs and smaller businesses, as many disputes are referred to us by other financial businesses as they are by claims managers.”

    Is the headline to this article accurate?

    I wouldn’t mind betting that the a good proportion of complaints will be from IFAs about ‘Non Independent’ – in other words, non IFA businesses – maybe Banks and tied salesforces etc?

  4. Perhaps a more useful set of numbers would be the proportion of upheld cases referred by IFAs.

    The FOS may well realise what many of us have known for years i.e. that good IFAs are the best protector of the investing public.

  5. Is this the FOS trying to fudge the issue with regards to spurious claims from claims management companies?

  6. How many IFAs pursue claims without the required authorisation?

  7. Natalie Ceeney does not believe that there is a claims culture in this country and will go to any lengths to prove her point. In the September issue of Ombudsman news she stated”The perception of a compensation culture is not supported by consumer behaviour” She goes on to say” I would argue that the answer lies with financial businesses themselves”

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