Complaints to the Financial Ombudsman

Wednesday, 19th May 2010 15:47 - by Resident IFA

The Financial Ombudsman Service (FOS) today published its Complaints data for the period 1.4.09 to 31.3.10. As an Independent Financial Adviser (IFA), I am happy to note that the proportion of cases involving IFAs declined by 1% in that period (Representing a 33% drop from 3% to 2%). Unfortunately, as a proportion of Pensions complaints, IFAs account for 28%. To be fair, IFAs are far more active in this market. To my knowledge and far-ago experience, Bank (‘Tied’) Advisers cannot advise on such as Pension Transfers and Group Personal Pension (GPP) schemes – possibly more contentious areas if the advice given is not spot-on. With the above statistic in mind, I came across a re-assuring, yet distinctly unsettling, coincidental anecdote earlier this week. Re-assuring due to its lack of relevance to me and the ethical manner and base from which I advise my Clients. Unsettling in that ‘they’ are still out there, being greed-driven Advisers. Now, I don’t want this blog to blow more than ‘the bloody doors off’, but I was shocked enough to relay this tale, rather than keep it to myself. Without going into too much detail – not having that much anyhow – a local firm of IFAs are still bashing through plenty of Pension Transfers (even Occupational ones!) and precariously-funded property investments via Self-Invested Personal Pension (SIPP) plans. Why are they doing this? Simple. Lots of commission. Disgraceful. The rest of us (the majority of IFAs I have met, may I add) are out there trying to give our all in the best interests of the Client...and then hear of Cowboys like this running around. Thanks guys. Thanks a bunch. Continuing the Cowboy analogy, the firm in question has a Financial Services Authority (FSA) inspection later this year. Here’s hoping that they are run out of town! This salutary tales tells you, the ‘person on the street’, that you must engage with your Adviser and the advice process, trying to understand the advice being given to the very best of your interest and ability. Ask questions. Ask plenty of questions. The simple ones are usually the best. Only accept compelling and relevant answers, not those ‘shifting in their seat’ answers. If in doubt, ask for a second opinion. Rant over. Until next time...