RegulationAug 21 2018

Pimfa keeps tabs on adviser Fos issues

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Pimfa keeps tabs on adviser Fos issues

The advice industry's trade body has said it regularly looks into issues relating to the Financial Ombudsman Service (Fos) and has contributed to the recent independent review of the body.

It comes after the Fos was accused of treating advisers as "guilty until proven innocent" in a survey of IFAs, which prompted calls for the service to engage more with the advice sector.

Earlier this year the Fos faced accusations of bias in a Channel 4 Dispatches documentary, leading to a review by former Which executive director Richard Lloyd.

In response to this, the Personal Investment Management & Financial Advice Association (Pimfa) said the Fos played a "vital role" in building consumer trust in financial services and said it engaged with the organisation to promote adviser issues.

A spokeswoman for Pimfa said: "Fos issues are regularly reviewed at our committee stages and we have produced a guide to assist our member firms dealing with a complaint both before and after a referral to Fos.

"In the past we have called for an independent review of Fos to ensure that clients and firms can access a sustainable, impartial, evidence based dispute resolution model and to this end we were the only adviser trade association who met with Richard Lloyd regarding his review of Fos published in July, where we raised the concerns of our members and believe our feedback was reflected in the final report issued following that review."

Earlier this year Pimfa launches its members manifesto, which set out its five-year approach to improving the operating environment for its member firms.

This included "ensuring appropriate and proportionate regulation" by the Financial Conduct Authority and the Fos.

In 2017/18, the Fos received 1,678 complaints against financial advisers, which made up 0.5 per cent of the total number of complaints it handled during that year.

Mike Pendergast, an adviser with Zen Financial Services, said: "I have never had any dealings with the Fos luckily and while I have read stories I don't really know what they are like to deal with."

damian.fantato@ft.com