Letter: Fos is a dictator that makes up the rules

Fos only rules on cases of financial loss – or else there would be no complaint. It then recreates the rules, with the benefit of hindsight, to arrive at a conclusion.

Sadly, so much advice is given on ‘technically correct’ but absolutely wrong grounds. Who dares suggest a pension transfer from a final salary scheme despite this potentially being the most financially attractive thing for almost anyone, because of the colossal transfer values based upon zero interest rates? If it works, great; if it does not, forget the advice, you have indemnified the client.

Yet, perhaps advisers failing to recommend something is done will mean that all those juicy transfer values which could halve in the next five years will result in their own complaints – or am I just being cynical?

While we search, there are some investment bargains out there that many advisers cannot or will not consider because of this ‘advisory anomaly’. As ever, the biggest risks will be those the regulators have not even begun to realise yet. Maybe that is buy-to-let, borrowing to buy your home, government bonds above par or guaranteed capital losses – or something else.

Philip Milton

Managing director

Philip J Milton & Co

Barnstaple