View more on these topics

Mandrake hits back at censure from FSA

Mandrake Associates Limited has defended itself against the FSA’s public censure over complaint handling failures, claiming it was acting in clients’ best interests and has saved the Financial Services Compensation Scheme millions of pounds.

The FSA imposed a public censure on the firm last week for serious failings in the way it handled mortgage endowment complaints. It says it would have faced a £400,000 fine if it were not for its financial position. It prohibited William John Pirie, the sole director, from carrying out any customer functions in regulated financial servicesPirie says delays in endowment complaint handling occ- urred after Mandrake comp- leted an MBO in 1996.

Former parent company Hambro Countrywide, now Balanus, retained responsibility for the pension review but Pirie says MAL took it to court in July 2005 for failing to conduct the review and won the case and an appeal in November 2006.

He says: “The effort involved in prioritising the court case and the pensioners delayed the processing of payment of endowment complaint awards.”

Pirie says by October 2007, payments on outstanding endowment complaint cases were up to date. He adds that the FSA’s decision to withdraw the company’s right to give decisions on complaints from August 2006 to March 2008 exacerbated any delays.

MAL’s cases have less than a 10 per cent uphold rate with the Financial Ombudsman Service. Pirie says the firm has saved the industry several million pounds by continuing to fight for clients when it could have simply fallen on the FSCS.

MAL has not done any new business for 20 years and Pirie says the firm continued to function in 2003 purely to ensure people affected by the pension review were not disadvantaged.

Pirie says: “The determination of MAL to honour commitments to clients ensured that pension review and endowment clients could be paid the full amount rather than the reduced amount that would have been paid if the awards had been administered by the FSCS.”


Morgan urges IMA to be flexible on yields

JP Morgan head of UK retail sales Michael Parsons believes the Investment Management Association’s new UK equity income requirements should be flexible in the current volatile market conditions.

Income fund set for Henderson

Henderson Global Investors is to launch an absolute return fixed income offering early next month.

I have a theme

For years, we have had a plethora of me-too funds with little thinking outside the box. The search for something different has been a poor hunting ground. Yes, we have had the gold & general funds. Global privatisation and global basics were novelties. True, dotcom was a disaster but was merely an example of lemming-like me-too-ism.

US election

Capital Market Notes, November 2016 David Lafferty, chief market strategist at Natixis Global Asset Management, looks at the impact on markets and portfolios since the somewhat surprising outcome of the US election. Click here


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