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‘Treating customers fairly could provide gift-wrapped claims’

The FSA’s treating customers fairly initiative could prompt the next wave of “gift-wrapped” complaints against IFAs, warns Aifa director general Chris Cummings.

He says claims management groups could exploit TCF’s high-level principles and encourage customers to take complaints over fairness to the Financial Ombudsman Service.

He says the vagueness of the TCF principles, which all regulated firms will have to embed in their business, means that IFAs will find it difficult to reject these complaints and prove their innocence.

Cummings says: “TCF could gift-wrap fairness complaints for these firms and IFAs may struggle to reject them. Once these claims management firms get through endowment complaints, they will be looking for the next opportunity.”

Reynolds Porters Chamberlain senior solicitor Harriet Quiney says: “There is a risk that customers who feel aggrieved will make stress and inconvenience complaints based on TCF. Although the awards will probably be quite small, IFAs will be most vulnerable due to their close relationship with clients and end up paying case fees.”

But FOS spokesman David Cresswell says: “TCF will not alter the nature of our investigations. We hope TCF will lead to fewer complaints because there will be less misunderstandings and less deeply entrenched disputes between consumers and IFAs.”


Credit Suisse unveils Incubator fund

Credit Suisse has announced details of its multi-manager Incubator fund to launch on July 25.It will aim to take significant stakes in funds less than 100m in size, hoping to capitalise on early growth.The fund will be managed by Gary Potter and Robert Burdett and be capped at 75m. It will invest in three main […]

Ombudsman report delayed

The Parliamentary Ombudsman’s report into whether Government “maladministration” harmed members of occupational pension schemes in wind-up has now been delayed until October.The Ombudsman has written to all scheme members who have complained apologising, but says the Government has requested it hear new evidence which will be presented to it when Parliament returns from recess.Independent pension […]

Montpelier in global joint venture

Global IFA Montpelier Group is launching Montpelier Fund Management this week through a joint venture with Montague Capital. The merger with the Stratford-upon-Avon- based global investment manager, which is effec- tive immediately, will allow Montpelier to offer high-net-worth clients discretionary and advisory portfolio management advice, with access to Montague’s 12 investment managers, in addition to […]

BM Solutions sets up self-cert fix

BM Solutions is launching a limited edition self-certification fixed-rate product at 4.85 per cent. The rate is fixed until September 1, 2007. There are no overhanging ERCs and an arrangement fee of 599.

Neptune’s Burnett looks beyond Greece

Watch Rob Burnett, manager of the Neptune European Opportunities Fund, discuss the Greek bailout deal and its potential implications for European equities. In the video Rob discusses: Why, with the Greek crisis receding, markets can now focus on Europe’s strong fundamentals The resilience of European markets and why the recovery is on a solid footing […]


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