A test case is being prepared by financial adviser support group JustIFA as they and many others believe that the complaints procedure against financial advisers is unjust.
When a complaint is made to a financial firm it has to be dealt with under industry regulation rules which mean that the complaint has to be dealt with within strict timescales. If, for example, the client is not happy with the outcome or the compliant is declined, the client has the right to send the case to the Financial Ombudsman for an independent ruling. The problem is that the financial firm has to pay fees and costs for ombudsman involvement whether they are innocent or not. This, many financial firms say, is unfair if you are innocent.
Our view
We totally agree with JustIFA's stance. It is totally right that any member of the public has a right to complain and likewise also has a right to an independent ruling. However, whilst there are many that have justifiable complaints there are also many who are complaining, and indeed winning, when they have no right to do so!
Financial firms should not have to pay costs when they are innocent and an independent adjudicator has also ruled innocence. Having to pay hundreds of pounds each time you are innocent is potentially a breach of human rights, even if it is ruled not to be it is certainly unfair.
Likewise, if a financial firm has been negligent then "string 'em up" ! Not literally of course.