In an exclusive report by industry newspaper Money Marketing (MM), a report highlights the possibility that the Financial Services Ombudsman Services looks set to announce the abolition of fees for the first two complaints that it charges independent financial adviser firms when a complaint is made against them.
What many people are not aware of is that if you make a complaint to a bank, insurance company or financial adviser, if they respond to your complaint and you are still not happy you are able to refer you complaint to the Ombudsmen.
The fact remains that the majority of complaints are made against insurance companies and direct sales (tied) financial advisers and not independents. In addition, more than half of all complaints are made against the top 20% of firms. In simple terms, it is the "big boys" who are creating all the problems.
As a result the ombudsmen may propose a new fees scale.
Our view
Fantastic news if it is true. Those that create the problems should pay for the problems!
has to date not had one complaint about the advice that it has offered so why should we pay the same as those that effectively create employment because they have so many complaints.