The encashment value as at the date of the final decision and the amount the clients can get from the FSA’s £54m compensation scheme will then be deducted to give the total redress amount.
A spokesperson for Fos said: “It [the decision] has been published so that people are aware of what our approach is. It gives context and provides commentary on what we will be looking for. We will be looking at individual consumer complaints.
“Fos has received approximately 100 complaints from consumers against their IFAs.”
The spokesperson also pointed out that the £54m redress package offered by the FSA was in regard to how the funds were managed and not the advice.
Joe Egerton, campaigns director for Justice in Financial Services (JFS), which is backing a separate judicial review claim by IFA firm Coull Money, claimed that publication of the decision is a “good thing” in that it reveals to Fos’ “thinking”.
Hi added, however, that in another respect it is “deeply worrying” for advisers as any “test case” - which is what he says this decision “clearly” represents - needs to be managed “properly”.