A solicitor is calling on IFAs to band together and form a defence union to contest decisions made by the Financial Ombudsman Service.
Glasgow lawyer Alasdair Sampson, of Drummond Miller, says the FOS appears to have adopted the principle that IFAs are not only responsible for the advice they give but also for a customer's decision not to follow that advice.
He says the quality of the complaint handling process and the justice of decisions is being brought down by an ombudsman that could “run roughshod over the IFA”.
Sampson points to a recent case where he says the FOS ruled against an IFA when the IFA's customer refused to follow advice to incorporate critical-illness cover into an endowment policy.
FOS head of communications David Cresswell says 60 per cent of IFA cases find in favour of the IFA and half these disputes are solved in mediation before appearing before the ombudsman.