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FOS rules against 14 more IFAs over Keydata advice

The Financial Ombudsman Service has ruled against 14 more advisers over unsuitable Keydata advice.

Since 1 April last year, when the FOS started to publish final decisions on its website, there have been 72 claims against adviser relating to recommendations to invest in Keydata.

Last October Money Marketing analysed FOS decisions against advisers, finding it had upheld 53 cases against advisers and rejected four.

Since then the FOS has published a further 15 final decisions relating to Keydata advice with 14 upheld against advisers and just one rejected.

A total of 67 complaints have now been upheld spanning over 30 firms and worth a total of more than £1m. The uphold rate against advisers still stands at 93 per cent.

Cases only reach decision stage if they are challenged by one of the parties involved with the vast majority of cases resolved at adjudication stage. Investment complaints are often complex and disputed meaning a higher proportion of Keydata complaints get to the decision stage.

Around 30,000 investors lost £450m when Keydata collapsed in June 2009. Many have claimed from the Financial Services Compensation Scheme, which has separately sought to recoup money from advisers.

The FOS has received about 100 complaints in total against advisers for Keydata advice and says each case is taken on its own merit.

Yellowtail Financial Planning managing director Dennis Hall says: “When it is an adviser’s word against a consumer’s, the FOS will always go with the consumer.

“But a lot of advisers took at face value everything in the Keydata marketing literature, which was not wholly accurate.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Test Comment MM 11.30

  2. Dennis is being diplomatic. Not only was the literature misleading,
    KPMG wasn’t involved
    The Regulator knew but didn’t tell
    Just this week an SLS adviser has been banned for wilfully misleading
    There are so many other administrative, oversight and regulatory failures – too many to list here. If the regulator was either derelict or ignorant how could any small adviser known better? And notwithstanding this veritable mountain of evidence it seems the advisers are still being blamed. The word that comes to mind is – Scapegoat.

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