A new company is aiming to help defend IFAs against complaints from private investors.
Financial Interest says it will offer an expert approach to the construction of complaint letters. It claims that IFAs can cut the potential cost of a complaint by outsourcing it to the firm's team who will research their case.
It says it will assess most complaints for a fixed fee of £100 and will act for an IFA for £75 an hour.
The firm says it can offer expertise in dealing with pension transfers, endowments, split-capital investment trusts, structured products and discretionary management.
Managing director John Wilton-Davies says: “The risks from losing even one complaint is significant. Our services will not only prove more effective than trying to resolve claims internally but will also be cheaper.”
Consumers' Association principal researcher Theresa Fritz says: “I am dubious about complaints' handling agencies like this. I think any IFA worth their salt should deal with their complaints themselves. I would be extremely upset to hear of any advisory firm using this service. It is appalling to think that companies like this are profiting on the back of the misery of endowments.”