Consumer confusion over time-bars could lead to a rise in next year’s Financial Ombudsman Service budget.Chief ombudsman Walter Merricks warns that the service will be tied up increasingly in dealing with consumers who have been time-barred. He says time-barring may look an open and shut case to many in the industry but for consumers it generates an “understandable sense of grievance”. Head of communications David Cresswell says dealing with consumers frustrated over time-bars will have the knock-on effect of increasing costs for the adviser sector. Cresswell warns advisers that they need to be quick when providing evidence that a time-bar has been illustrated clearly to clients but admits that the FOS’s hands are often tied as evidence needs to come from life companies which may be slow to provide information. If evidence of a time-bar is not forthcoming, the complaint will be upheld and a case fee will be charged to the adviser if they have gone over their allocation of two free cases or are part of a network. Cresswell also warns that as the industry moves towards the end of the cycle for endowment complaints – the last time-bars will come into force in 2009 – the most complex cases will come out of the woodwork. Merricks says: “Time-barred endowment complaints may look open and shut but their emotional content may be more explosive. I am not sure how we will explain the impact of that to those who scrutinise our budget.” In July, the FOS forecast a continued increase in endowment complaints against advisers as they typically lag behind general trends in the industry.
Many IFAs would be forgiven for thinking that once the Financial Ombudsman has reached its final decision, then there is nothing you can do, regardless of how arbitrary and capricious it may be.
Standard Life believes that half the people earning under 25,000 involved in the proposed National Pension Savings Scheme would be worse off because of the scheme.Their savings will be means- tested, so saving will have been pointless in the first place, it says.We can get into all sorts of arguments about the construction of the […]
Axa is in acquisition talks with Thinc Destini and hopes to have the deal tied up soon. It says Thinc Destini would continue to be run as independent advisory firm and Axa would use the deal to expand UK distribution and offer greater consumer ins- ight and a closer relationship to customers. The move, exclusively […]
Three claim-handling companies are preparing to appeal on up to 5,000 endowment misselling cases on their books that have been turned down by the Financial Ombudsman Service because of time bars. CPH, Endowmentclaims. com and Whitehall Randell say if any appeal is rejected it will try to launch a judicial review on time bars.
What might Trump’s policy proposals mean for markets and key components of the US economy going forward? The questions outnumber the answers at present. Loomis Sayles Macro Strategies takes a look at the impacts of the US election. Click here
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