Financial Ombudsman Service  

Experts criticise new Fos limit

Concerns surrounding DB cases in the market will be a major driver for soaring premiums, experts agree. 

Last year the work and pensions committee said DB pension transfers represent “another major mis-selling scandal” that “is already erupting”.

“Those who gain are a small number of people who have options, and the losers are a far bigger proportion of the public who will not be able to get DB transfer advice, along with businesses who potentially cannot do work they were doing perfectly well before,” says Mr Webb.

“Advisers are telling me they have been doing this sort of work for 25-plus years, never had a complaint, but have been given a renewal quote five times the size with an enormous excess, so they’re quitting,” Mr Webb adds.

Key Points

  • The Fos limit has risen for the first time since 2012, following an FCA ruling.
  • Adviser companies are voicing concerns about increasing the cost of doing business and access to advice.
  • The increase has shone a light on the awards process, which some believe is flawed.

Mark Taylor is a freelance journalist