The Financial Ombudsman Service has dismissed the recent flurry of judicial reviews against it as “flavour of the month”and it is unlikely to change the way it operates.Chief ombudsman Walter Merricks says many of the accusations coming from advisers, claim-handlers and lawyers have been contradictory and exaggerated. He says: “Not a week seems to go by at present without someone announcing a legal challenge to our decisions or procedures. “However, these kinds of dramatic yet rather confusing claims are, hardly surprisingly, unlikely in reality to rock the foundations of the ombudsman service.” He says the FOS is regularly being accused of being above the law and unchallengeable and contravening human rights legislation which a landmark test case would halt. Merricks says cases are often described as a “stunning blow” against the FOS in the courts that will save the industry millions. He says these claims are unlikely to change the FOS despite the dramatic nature of the claims. He says claim-handlers have a business interest in maintaining the flow of endowment complaints while lawyers will put an optimistic spin on what they may achieve to attract business from financial firms. Merricks says everyone would benefit if judicial reviews provide the courts with opportunities to clarify aspects of the ombudsman’s work definitively. IFA Defence Union chief Evan Owen says: “All we are asking for is an avenue whereby the Financial Ombudsman Service can be made accountable to a higher authority. The way that the system has been designed, applying for judicial review is the only way that we can look for justice.”
GE Money Home Lending is considering dumping a portfolio of loans it services after Which? found discrepancies that could cost customers hundreds of thousands of pounds each. Which? found that a £269 legal fee on one mortgage sold in 1991 by Redfern Financial Services could turn into a £162,672 debt on top of the homeloan […]
It is difficult to remember the world that existed before the introduction of credit cards in the UK. Barclays was the first and that was over 40 years ago.
Network Data Holdings is considering setting up a lending operation in the early part of next year. The parent company of Network Data, which floated on Aim last month, is looking at launching a dormant firm it owns, Homeowners Mortgages. HM was set up in November 2005. It is not clear where it would operate […]
Whitechurch Direct is looking for business from bigger IFA firms and says it can undercut SimplyBiz by 40 per cent for firms with a turnover of more than £210,000The firm says both of the support services companies’ fees are similar for IFA firms with an annual turnover below £210,000 but for claims that for companies […]
The final stages of a sell-off can be the most interesting, says Simon Edelsten, manager of the Global Select Fund. It is not a matter of calling the ‘bottom’. Instead, investors should focus on selected stocks’ prospects over the longer term.
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The Financial Services Compensation Scheme will automatically compensate hundreds of clients of a collapsed discretionary fund manager, but other investors will have to wait another five months to get their money back. London-based Beaufort Securities has been investigated by both the FCA and US authorities. An indictment from the US Department of Justice alleges that […]
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The FCA has reiterated its warnings that advisers outsourcing defined benefit transfer advice to firms with relevant qualifications cannot divorce themselves from responsibility for the eventual recommendation. While existing FCA rules require additional qualifications to advise on DB transfers, and the FCA has written to all firms who have DB transfer permissions as part of […]