Ken Davy: Fos case gives ambulance chasers a field day
Insistent client case ‘contrary to natural justice and common sense’.
As a general principle I have, over the years, supported the Financial Ombudsman Service (Fos) as a system which, while not perfect, generally enables complaints from consumers to be dealt with in a less costly and more effective way than through the courts.
Recently however, I have seen a case concerning an IFA with an unblemished record of 20 years, where the ombudsman’s decision appears so contrary to natural justice and common sense, it has shattered my confidence in Fos.
The case was one regarding insistent clients, which found against the adviser.
While not being about a final salary transfer, it has created a ‘red alert’ for other financial advisers regarding clients who want them to facilitate their exit from a final salary scheme. In essence, the message from Fos appears clear – whatever the facts the adviser is guilty.