View more on these topics

Friends says appeals may pose threat

The Financial Ombudsman Service should not introduce an appeal process as it could undermine the service and damage its reputation, says Friends Provident.

In its response to the Hunt review, Friends says while there may be value in looking at the wider implication process to ensure issues of concern can be raised, there has to be a final decision made at some stage.

Its submission says: “We certainly have occasional cases where we are unhappy with a decision but feel the value of FOS as it is outweighs the disadvantages.”

Friends argues that naming and shaming firms which get complaints causes more harm than good. It argues that it may pressure the firms to change their approach but it also creates and perpetuates a negative impression on the whole sector, including those who are achieving the right standards.

It says: “We do not feel it is appropriate for the FOS to publish the outcomes for individual businesses. If a firm is not following the FSA rules, then the FOS should refer them to the FSA.

“Publication by the FOS would lead to a much higher degree of argument with the FOS and firms much less likely to accept their judgement on a case without further discussion thereby lengthening the time taken to reach a conclusion.”

The firm agrees a 15-year long-stop for raising complaints is needed, saying it would provide greater financial certainty to advisory firms but adds that the FOS should stay free for consumers.

It says: “This is the correct approach and is a key in its accessibility. We believe it is reasonable for a customer to incur phone call charges to the FOS at local rates and would not support the introduction of a free phone number. The customer does not contribute towards any other cost.”

Recommended

CAR crash as Skandia slams ‘desperate’ life offices

Skandia has hit out at the Association of British Insurers’ call for customer-agreed remuneration to be mandatory for advisers but not direct sales, saying it is based on the self-interest of “desperate old traditional” members.Skandia chief executive of UK business Brett Williams says CAR is a fundamental principle that must apply to the whole market […]

Widows sexes up ads for 2012 Olympics

Scottish Widows is running a new advertising campaign featuring Olympic 2012 hopefuls.The films form part of an online advertising campaign to celebrate the sponsorship collaboration between the 2012 London Olympics and Scottish Widows.The ads feature choreographed routines performed by champion gymnasts Alex Jerrom and Lara Hallett, who morph into the Widow, Hayley Hunt.An online competition […]

Wave of criticism for climate fund

Advisers have slammed Virgin Money’s new climate change fund, claiming it has an excessive charging structure and can easily invest in companies that damage the environment.Hargreaves Lansdown head of SRI Alex Davies says that the biggest problem is the 20 per cent performance fee for beating the Bank of England base rate, which he sees […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment