In its 49-page Business Plan for 2014/2015, the FCA revealed it would revisit the matter as part of a consultation on firms’ prudential requirements.
It said: “We will consider the case for a 15-year time limit on complaints to Fos to review whether the current arrangements are delivering the best outcomes for consumers overall.”
It represents a major breakthrough for the campaign to introduce a long-stop on complaints against financial services firms, as neither the Financial Services and Markets Act 2000 to cover a long-stop provision for complaints to Fos.
Ned Cazalet, the founder of Cazalet Consulting, has long warned that networks and larger financial advisory firms are taking a hit on profits due to costly reviews of historic business.
A campaign to limit the liability on advisers was spearheaded by the Association of Professional Financial Advisers and its previous incarnation, the Association of Independent Financial Advisers, alongside Zurich in 2012, with several networks taking up the cause amid concerns about their back-of-book business.
At least 80 more advisers signed Tenet’s e-petition on the same day the FCA unveiled its business plan, taking the number of signatures past the 5000 mark.
Chris Hannant, director general of Apfa, said: “A 15-year long-stop would improve the ability of advice firms to seek capital investment, leading to a stronger sector overall, which will ultimately benefit consumers.”
Richard Howells, intermediary sales director at Zurich, said: “We look forward to working with advisers to present a strong case to the FCA, to ensure that advisers are treated in the same way as other professionals, including solicitors and accountants.”
Helen Turner, group distribution and development director at Tenet, said: Uncapped liability for advisers is a serious issue for our industry and it is time this was addressed.”
