Your IndustryApr 23 2015

Apfa in talks with Fos on adviser complaint concerns

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Apfa in talks with Fos on adviser complaint concerns

Adviser trade body the Association of Professional Financial Advisers is to hold talks with Financial Ombudsman Service representatives on concerns raised during an evidence gathering project with larger intermediaries, including splitting cases to circumvent a £150,000 claims cap.

Speaking today (23 April) at a regional seminar held in London, he said that the Fos had been a “common theme” in adviser conversations during a project launched at the end of last year to investigate complaints.

“We wanted to make sure we have the right evidence so we have the case for change. Now, if you are on the receiving end of a complaint and you lose it then you will understandably feel aggrieved, but that doesn’t mean to say necessarily the ombudsman is out of control.

“What we need to do, and what we have been doing with the larger firms, is trying to gather that evidence base across the industry to identify patterns and trends; and we do think we have found some things which are of concern.”

Speaking to FTAdviser, Mr Hannant said that Apfa has a date to meet with the Fos in May, when he will discuss some of the issues which have arisen from the investigation.

These included concerns about splitting cases to go round the £150,000 compensation cap; getting a fair hearing in terms of speaking to an adjudicator; and appealing to Fos ombudsman and whether this was a “genuinely independent fresh look”.

He emphasised that there were two key delivery issues: that of transparency and that the ombudsman says what it does is delivered and felt on the ground.

Mr Hannant added during the seminar that Apfa is currently in the process of trying to identify cases which support the particular points of concern and that the organisation wanted to hear from anyone who had a “bad experience” with the Fos.

He added: “We will be pursuing that conversation with the ombudsman and the FCA throughout the year.”

A spokesperson for the Fos said: “We’re always happy to speak to Chris and Apfa about any concerns they have, and any adviser who’s concerned about a complaint – or would like our view on anything from topical issues or specific complaints – is always welcome to give us a call.

“We can reassure advisers that the ombudsman does not split cases just so consumers stand a greater chance of receiving more compensation. The maximum amount we can compel a business to pay under the FCA’s rules is £150,000 – though we can give recommendations about that amount.”

It added that wherever possible, the Fos will try to deal with multiple complaints ‘in one go’ and will sometimes combine several separate cases made by a consumer in to one if the issue is effectively about the same incident or product.

“Occasionally we may ‘split’ cases, but only where it’s clear that we’re dealing with separate, distinct complaints,” the Fos stated.

“From case fees to compensation, we’re very much aware of the impact our decisions can have on smaller businesses. But to put things in perspective, we rarely conclude that splitting a case is necessary.”

Elsewhere, Mr Hannant said that Apfa is expecting to get conclusions on talks with the FCA surrounding the long-stop later this year.

“We have got to the first stage, getting them to acknowledge they need to look at it, so we are now talking with them about possible solutions and why it is important.”

Last week FTAdviser sister title Financial Adviser revealed a drive led by Apfa and insurer Zurich to introduce a long-stop for financial advice complaints is entering its last phase, with a consultation launched on the trade body’s website to gather views on different implementation options.

ruth.gillbe@ft.com