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.
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 […]
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.
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.
Direct-investment commercial property funds can now be held in Isas. Matt Davis reports
At the end of July, the Pensions Regulator issued its quarterly update on auto-enrolment (AE) compliance by employers in the UK. The full report can be seen under the quarterly bulletins section here.
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Offsetting the cost of advice this way would benefit clients and advisers alike One of the multiple barriers to better take-up of financial advice is that some people are unwilling or unable to meet the upfront cost. In response to this, the government has allowed people to take small chunks (three lots of £500) out […]
Fund managers like to trade off having a unique style. There thousands of funds out there to choose from – the question I often hear from advisers is: what makes this person different? Sometimes this can be a really tough one to answer. “We invest for the long term” is all fine and good, but […]
With rising costs and an increasingly tough regulatory market more advisers are looking to outsource their investment proposition, with many leaning towards discretionary fund managers. But while the number of advisers using DFMs is on the up, overall satisfaction with them has dipped. According to a recent survey by financial information firm Defaqto, 74 per […]