View more on these topics

We need the truth on claims

Lord Lipsey’s remarks suggesting that some people lied to get compensation by pretending not to remember conversations in both the pension and endowment reviews have provoked outrage among advisers.

To have a former regulator and architect of the pension review make these remarks puts the whole apparatus of regulation in a new unflattering light. Lord Lipsey should elaborate on these remarks as a matter of urgency. How long has he held these views and what proportion of people does he think lie?

We can only ask, what have advisers been paying for all these years? A system that was meant to increase confidence in financial services and to stop unnecessary recourse to the courts has been undermined. You cannot operate a system of regulation that allows large numbers of vexatious claims. It allows some people to benefit at a cost to others.

Advisers feel the heat more than most but the costs of unfair claims are passed around whether to policyholders, shareholders and other financial services consumers.

For too long, any criticism of the pension review was regarded as something that dared not speak its name. It did for Garry Heath’s IFA Association but now it has been criticised by one of its architects.

The pension review then helped inform the endowment review where advisers who could not prove they were right with detailed records were often found guilty. How many consumers were lying?

At the very least, these remarks should inform Lord Hunt’s review of the ombudsman and there is a relevance for any court challenges to the ombudsman’s jurisdiction.

It makes it all the more important that the FSA publishes the information it has over the firms which mispriced Lautro projections.

It also has massive relevance for the RDR. One question the FSA did not ask was whether the compensation scheme was not working because complaining consumers had the odds stacked in their favour. It should ask it as a matter of urgency.

Recommended

Banks are being under-regulated

I have asked the FSA to demonstrate that there is a foundation for its view that commission distorts sales and that banks offer a worthy solution to the savings shortfalls of middle to low-income groups. The FSA has supplied neither and therefore I conclude that the RDR is without foundation, perhaps even a manifestation of […]

Preferred writes to packagers to clarify which criteria will apply to re-offer cases

Preferred has written to packagers and brokers to clarify its policy regarding which product range and criteria will apply to cases requiring re-offer after the October 5 cut-off date.This is in relation to its recent communication announcing new product launches on its core range from October 3 and its shared ownership range on October 10.It […]

Tories bring out the sweeteners

The Conservatives have begun to play their hand, possibly a little earlier than originally planned, in Blackpool this week with a series of concrete policy statements to the electorate.

Filling the void

As autumn descends on the UK once more it appears that any possible lull in the office is well and truly over, as silence from what has been a MoneyMarketing skeleton crew in the past couple of weeks has been replaced by the hustle and bustle as all of our reporters catch up on their respective patches.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment