PFS says phoenixing must stop or risk pushing up advice cost

Tim Morris, IFA with Russell & Co, said he felt the FCA's crackdown on phoenixing CMCs - especially advice firms failing, falling onto the FSCS, and then setting up again as CMCs to pursue those claims, cannot come "soon enough".

He said: "I’m not a fan of ambulance chasers at the best of times. There are much better ways to promote methods of compensation for what might (in retrospect) be deemed as poor advice. 

"There’s something seriously wrong with a system where someone can advise a client and then they, or someone else, can charge that client an eye-watering commission to claim compensation for them in future.

"And then potentially charge them a fee to reinvest the compensation proceeds. 

"My solution for such perpetrators, as the first Queen Elizabeth might have said, is: 'Orf with their heads'."

Simoney Kyriakou is senior editor of FTAdviser