The Financial Ombudsman Service has said that the Chancellor's U-turn on residential property in Self Invested Pension Plans (Sipps) will not lead to a stream of claims against advisers, but has warned that 'A-day' will result in misselling claims in the longer term.
The Financial Ombudsman Service have also played down warnings that were made by them before Christmas, that advisers should have made it clear to clients that placing residential property in Sipps was only a possibility. They are now saying that advisers will be expected to have provided advice based on information available at the time.
The ombudsman is expecting complaints to rise by 10,000 to 125,000 in the next financial year, with two-thirds lodging complaints about endowment policies before some life offices impose the three-year time limit.
Our view
Provided financial advisers have warned clients in their reports that despite the news laws becoming effective in just under three months, Her Majesty's Revenue and Customs and the Government have still not finalised the rules then they should be fine.
In this regard, both Government and the HMRC have been "asses".
How can you change a huge rule about property purchase knowing that pension companies and advisers have spent millions of pounds for new systems and products with less than six months to go!