View more on these topics

FSA warning to IFAs trying to recoup complaint fees

The FSA says it will take action against IFAs if they try to dissuade consumers from pursuing claims.

The Financial Ombudsman Service has seen increasing numbers of cases where IFAs have been telling consumers that if they take their complaint to the FOS they will have to pay the IFA&#39s fees if they lose.

The FSA says it has written to firms telling them it considers it unfair for a firm to try and recoup its case fee from an uns-uccessful consumer complaint and it will take action against firms which try to do this.

The regulator points out that if the FOS finds a claim brought by a consumer to be frivolous or vexatious, the IFA would not have to pay a case fee.

There is no case fee for the first two cases brought against an IFA in any year but the third case costs £360. Figures from the FOS show that of the 4,000 complaints received last year, only 124 firms appeared in front of the ombudsman more than twice.

FOS spokeswoman Iris Baker says: “Some IFAs tell consumers that if they take their case to the FOS and lose, they will have to pay the IFA&#39s case fee. We are totally against this – the whole basis of the FOS scheme is that it is free to consumers. We would deter any IFA from doing this and would let the FSA know about it.”

FSA spokeswoman Jackie Blyth says: “We would consider it unfair for any firm to charge for a complaint. If anyone comes across a firm writing to consumers asking for its case fee back, they should let us know as this is not treating customers fairly.”

Recommended

Chubb opens door to IFAs again for PI

Skandia is following the majority of protection providers by withdrawing from the pre-funded long term care market, citing a lack of interest from consumers, leaving the Pension Annuity Friendly Society as the sole provider of the product. Skandia believes there is “uncertainty and confusion” among consumers over what is available and a misunderstanding that the […]

LIA and Sofa merger to unite 25,000 advisers

The IFA industry&#39s two leading trade bodies, the LIA and Sofa, are proposing a merger to form a single organisation with a membership of 25,000 advisers. Sofa has around 10,000 members and the LIA has about 20,000 members but some advisers are members of both bodies so the total is exp-ected to be around 25,000. […]

Tiner lays out plans to quicken enforcement process

The FSA plans to cut the time it takes to complete enforcement procedures by around a third. Speaking at the FSA&#39s annual public meeting in London last week, chief executive John Tiner revealed that the regulator has just completed a review of the enforcement process which looked at the case referral, investigation and decision-making stages. […]

Holland takes over as commissioner to watch the FSA

Sir Anthony Holland has been appointed as independent complaints commissioner for the FSA, taking over from Rosemary Radcliffe who has held the job since the scheme began in September 2001. Holland has been chairman of the Northern Ireland Parades Commission and was principal ombudsman for the Personal Investment Authority. The complaints commissioner is responsible for […]

Artemis Monthly Distribution Fund: positioning and outlook

Managers James Foster and Jacob de Tusch-Lec outline the fund’s investment approach and discuss current investment themes and outlook for the bond and equity markets. As James and Jacob confirm, the Artemis Monthly Distribution Fund’s aim is to generate an income from both equities and bonds. They explain their investment approach in each asset class, the sectors where they are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com