I am writing in reference to Tony Hazell’s column about Fos’s ruling aganst Chadney Bulgin over an annuity sale to a terminally ill man.
If in doubt, I would not arrange an annuity, but I had a client in a similar situation just before Christmas; we all thought he was going to die and hence remained in drawdown due to the death benefits.
I am really pleased to say he is now on the mend, but his life expectancy remains uncertain, so it is unlikely an annuity will ever be suitable now. However, it is very easy to sit in judgement on the adviser, as the Fos and Tony Hazell are doing, when none of us were flies on the wall and the Fos never give the full picture when they publish their decisions.
We record all our meetings, so that the logical/reasons why we and the client have arrived at the conclusion to act in the way we have done can be clearly understood. With the best will in the world, the suitability report does not do this, it is just supposed to confirm why the product is thought suitable and not why the decision was made.
Phil Castle
IFA
Financial Escape, Ramsgate, Kent
