RegulationJun 29 2016

Retired adviser slams Fos charge for dismissed complaint

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Retired adviser slams Fos charge for dismissed complaint

A retired adviser has been billed £550 to pay for a complaint to the Financial Ombudsman Service (Fos) which wasn’t upheld.

Richard Iwanek, who worked as an adviser in Warwickshire for more than a decade until he retired in 2012, had to fend off a complaint that he mis-sold pension contribution insurance.

But when the complaint was dismissed by both his network Personal Touch, and by Fos, he still faced a bill of £550.

He said: “The person who complained hasn’t paid anything – it hasn’t cost them a bean. It seems to me to be a very unfair system.

The person who complained hasn’t paid anything - it hasn’t cost them a bean. It seems to me to be a very unfair system. Richard Iwanek

“It is a significant amount of money, especially for someone who is retired.”

Mr Iwanek said he was insured with Personal Touch to cover such issues, but the amount charged by Fos was less than the excess.

He added this was the first and only complaint he had received during his financial advice career.

The complaint, which was made to Personal Touch rather than to Mr Iwanek, related to pension contribution insurance which the client alleged had been mis-sold.

But Mr Iwanek said that at the time, it had been compulsory to offer this product and the details of how he had advised the client were set out in the suitability report.

A spokeswoman for Fos said: “We offer a free service to everyone who brings a complaint to us. It is important to note that we only charge a business after the 25th complaint has been brought against them – so they receive up to 25 free cases.”

A spokeswoman for Personal Touch said: “The standard Fos fee is irrespective of the outcome to fund the service they offer, providing all consumers with the right to get an independent review on their complaint.”