View more on these topics

Tory Treasury MP hits out at claim-chaser

Marketing is at risk of misleading consumers that firm’s service is Government-backed’

Conservative Shadow Financial Secretary to the Treasury Mark Hoban has attacked an endowment-chasing comp- any and claims that consumers could be misled into believ- ing that its services are backed by the Government.

Fareham MP Hoban says marketing material received by a constituent from claim firm Oasis Financial Services led them to believe it is endorsed by the Government or working on its behalf.

The literature prominently displays the words “Government Assistance” at the top of a page and goes on to explain how the Government dec- ided that people who have been missold an endowment are due compensation. Letters to potential claimants also focus on Government con- cerns over people getting into financial difficulties.

Hoban says if the firm wants to explain the Government’s role in this manner it also needs to mention that the Financial Ombudsman Service is free to consumers.

Oasis features a no-win no-fee service with a charge of 25 per cent plus VAT on any successful claim. Hoban says this misses the point of the compensation which is meant to fill the shortfall in the consumer’s endowment.

Hoban’s call to force firms to include reference to the availability of free alternative services is expected to be included in the regulation of claim management companies in Compensation Bill legislation which will be implemen- ted later this year.

Hoban says: “I think this marketing is at risk of misleading the consumer into the belief the company is offering a Government-backed service. The FOS offers a complaint service for free and consumers would be better off going through these proper channels rather than relying on firms like Oasis.”

Oasis Financial Services refuses to comment.


Making allowances

An important issue in respect of the new A-Day legislation which still requires clarifi-cation is whether personal contributions in excess of an individual’s earnings to a registered pension scheme made after A-Day will count towards the annual allowance. According to the CII, personal contributions in excess of the greater of 3,600 gross and an indiv-idual’s […]

Turnover rises by 28% for Sumus

Falcon Group holding company Sumus has announced a 28 per cent increase in turnover for the first quarter of its financial year from 2.6m to 3.3m. The firm now has 133 advisers and says it is reviewing acquisition opportunities.

Ailo brochure explains bonds

The Association of International Life Offices is launching a brochure to help UK advisers better understand offshore investment bonds and why they might be suitable for their clients.


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 thought leadership.

    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