The Financial Ombudsman Service (FOS) has warned companies not to rely on investor experience in misselling complaints. It says firms often cite the fact that the complainant has previously invested in similar products to claim that they are experienced investors and should have been aware of the risks. But the FOS believe that companies are often guilty of prejudging and that having some former experience does not make a customer an expert. Investment experience is only one part of what the FOS looks at when investigating complaints and circumstances recorded in the fact-find or client questionnaire, such as stated attitude to risk can take precedence.
Our view:
As ever, the FOS gives the benefit of the doubt to the consumer. In many cases this is probably the right decision, however, there will be those who slip through the next and get compensated when perhaps they should not have been.