View more on these topics

Watchdog says go to an IFA for free review

The Financial Ombudsman Service has taken the unusual step of recommending a complainant to seek a commission-based IFA to review their case despite knowing the adviser is unlikely to be paid.

The move comes as commission is under scrutiny from the Treasury and regulator.

The case involves a mortgage endowment policyholder who disagreed with compensation offered by Friends Provident and complained to the FOS. The ombudsman agreed with Friends&#39 offer but, when the policyholder persevered, suggested a commission-based IFA be sought to review the case.

A letter from ombudsman investment division assistant manager David Bird says: “May I suggest that it is not unusual to be able to locate a financial adviser who does not charge an hourly fee and who may work on a commission basis. If you sought out

such an adviser you would be unlikely to be charged a fee.”

The client&#39s regular IFA, Surrey-based Informed Choice managing director Nick Bamford, says: “It is not fair for the ombudsman to expect an IFA to do the work with no hope of being remunerated.”

An FOS spokeswoman says: “There are IFAs who would take on a review of a mortgage endowment case knowing they will not be paid commission because they may be able to develop a relationship with the client down the road.”


Term insurance sales up

Sales of term assurance increased by 8 per cent to 1.05m in 2000 from 973,000 in 1999, according to a survey by GE Frankona Re.The increase means term assurance has now been bought by 25 per cent of the UK working population, with 7.3m policies in force in 2000. Sales of policies over the web […]

Rates of change

This week, I want to look at the real nature and effect of interest rate risk. On commencing a drawdown contract, the maximum withdrawals for the next three years are restricted according to tables drawn up by the Government Actuary&#39s Department. The interest rate used is the redemption yield on long-dated Government bonds and the […]

Towry&#39s &#39dowry&#39 In bid to boost RIs

Towry Law is embarking upon a drive to recruit 800 IFAs within the next four years, boosting its ranks to 1,000 RIs.Chief executive Douglas Black also claims he believes the £30m bailout by the ICS after the £48m Advizas&#39 pension misselling represents a good deal for the industry and could have saved it £20m by […]

Independent view

More than 10 years ago, the market started to consolidate in the independent sector when networks and big IFA firms started to emerge.Independent sole traders and small partnerships happy trading on their own saw the networks as a way of benefiting from the economies of scale so they were happy to join without losing their […]


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 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