View more on these topics

Ministry rejects wealth warning for chasers

The Ministry of Justice has snubbed Lord Hunt’s call for claim-chasers to be forced to put wealth warnings on their advertising.

In his recent review of the Financial Ombudsman Service, Lord Hunt recommended a crackdown on claim-chasers, including making them carry warnings about the cost of their service and the free alternatives available.

Ministry of Justice head of claims management regulation Kevin Rousell says its code of conduct, which ensures this information is disclosed before a contract is signed, is enough to protect consumers.

Rousell says: “I do not know about having a requirement to put a warning in the initial advert. The most important thing is to make sure that consumers get the right information at the right time before they commit themselves to a contract with a company.”

Advertising Standards Authority communications and policy manager Lynsay Taffe says Lord Hunt’s recommendation is not workable. She says: “As costs vary from case to case, any figure quoted in an advertisement would instantly be deemed misleading. Information about the cost of a service should be made available before a contract is signed. As far as stating alternative options is concerned, perhaps the FOS should advertise its service.”‘

Recommended

AMI addresses crunch questions

The Association of Mortgage Intermediaries has published a white paper on credit crunch solutions for the industry. It suggests looking at new areas of funding such as sovereign wealth funds.

Absolute alpha role for Osborne

BlackRock has appointed Nick Osborne to co-manage its 800m UK absolute alpha fund with Mark Lyttleton.

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