View more on these topics

IFAs slam PIA watchdog over pensions redress

IFAs have slammed the PIA ombudsman for encouraging policyholders seeking redress over pension misselling to complain in order to validate any offer they have received.

A Rochdale IFA is fuming after a client was advised by the ombudsman that the “only way” to verify an offer of compensation was to make a formal complaint against the adviser.

The client asked for redress last December after claiming she would have been better off joining her employer&#39s scheme than taking out a personal pension with Norwich Union.

Although the IFA claims he advised her to join the company scheme, under PIA rules, he offered redress of around 10 times what had been paid into the personal scheme.

Despite this, the client wanted to validate the offer and contacted the FSA for guidance. The regulator advised talking to the PIAOB which seem- ingly told the client to complain although the IFA claims the client had no intention of previously doing so.

The IFA will now have to pay£500 for the PIAOB to investigate the case.

Klonowski & Co principal Francis Klonowski says: “Complaints have gone beyond a stage which we can control. An IFA could have been acting perfectly ethically and properly but can be called to task over one little chink. What we need is a high-profile case where in these sorts of situations the client loses and loses badly.”

Millbrae Financial Services managing director Carl Melvin says: “I think it is outrageous that the PIAOB has suggested that. It is not there to condemn the IFA and should be more even-handed. This is a regulator at its worst.”

Financial Ombudsman Service head of communications David Cresswell says: “It is always going to be a consumer&#39s prerogative to make a complaint.”

Skipton Building Society is launching a new tracker mortgage that uses the three-month US dollar Libor rate as a benchmark which has been lower historically than the three-month sterling Libor. The starting rate for the loan is 4.89 per cent – 3.9 per cent USDL plus 0.99 per cent. It will be reviewed every quarter and adjusted as the USDL changes. There is a redemption charge of 5 per cent on the balance for the first five years.


HSBC Bank International – World Growth Fund

Monday, 2 July 2001.Type: Ucits.Aim: Growth linked to the FTSE 100, S&P 500, Nikkei 225 and Dow Jones EURO STOXX 50 indices.Minimum investment: £5,000 or $5,000.Place of registration: Dublin.Investment split: FTSE 100 25 per cent, S&P 500 25 per cent, Nikkei 225 25 per cent, Dow Jones EURO STOXX 50 25 per cent.Isa link: No.Charges: […]

Cazalet predicts a bloody battle

Influential analyst Ned Cazalet has a chilling prediction.Life 2001, Cazalet&#39s annual and costly tome on the industry, says: “The distribution landscape is changing dramatically as many old-style direct distributors wind up their salesforces, which seems to afflict parts of the IFA market, too. This is going to be very bloody and very brutal, leading to […]

Three year fixed rate bond from C&G

Cheltenham & Gloucester is launching a three-year fixed-rate bond paying 5.65 per cent a year gross (4.52 per cent net) until September 30 2004. The bond is available from Monday July 2, for a limited period of time. Thew bond is open to all investments of £500 or over and additions can be made as […]

Stroud & Swindon launches new savings account

Stroud & Swindon is launching a new savers account through it&#39s direct arm. Savers can receive a rate of 5.25% by investing in the new account. The current rates include a 0.25% introductory bonus. The minimum initial deposit is £5,000 while the maximum is £500,000. Savers can arrange to withdraw funds direct to their bank […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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