With regard to the spike in Financial Services Compensation Scheme fees, perhaps it is about time for those using unregulated or more unconventional investments to be put into a separate category for the compensation levy.
It appears that the bulk of complaints and large compensation payments seem to come from such investments which advisers have used either for the large commissions that were payable or by the high headline investment returns that were on offer.
Correct me if I am wrong, but I would suggest that much of this levy is created by a few advisers. I would be interested to know the percentage numbers.
My last point is that advisers must have the courage of their convictions to turn potential clients away who are either insistent or come up with these stupid ideas for investment. The caveat ‘if it looks too good to be true it probably is too good to be true’ springs to mind, and any adviser worth their salt should be able to point this out to a potential client.
Bob Donaldson
Retired IFA, Bridgend
