The head of the Financial Ombudsman Service review Lord Hunt is writing to former PIA director Lord David Lipsey, asking him to provide evidence that many people who received compensation from the pension review provided misleading information to the regulator.
As reported by Money Marketing, Lord Lipsey last week admitted that some policyholders who were compensated in the pension and endowment reviews should not have received a payout because they were not telling the truth.
Hunt says these are “very important” allegations and he will be writing to Lipsey to invite him to give evidence to the FOS review.
An online poll conducted by Money Marketing found that 95 per cent of 402 adviser respondents say they believe some people lied to get pension and mortgage endowment compensation.
The review of the FOS will investigate why consumers use claim-chasers rather than going direct to the watchdog for free as well as looking into suggestions of perceived unfairness in favour of consumers.
Hunt says: “I will send off a letter to David Lipsey immediately, asking if he would come in to talk to us. These are very important allegations he is making. I will certainly investigate this and ask him to give evidence.”
Speaking at a Social Market Foundation/Provident Financial event at the Labour conference in Bournemouth last week, Lord Lipsey, who was leader of the pension review, said: “A lot of people had been sold pensions perfectly validly and they had either forgotten what had happened or they remembered but knew it was in their interests to forget what had happened to them.”
Informed Choice director Martin Bamford says: “Compensation is always an emotive subject for IFAs and they take it very personally. Hopefully, consumers are aware that they have to be honest and the questioning does go into a lot of detail. Fortunately, this appears to be behind us but it has left a bad taste in advisers’ mouths.”