PensionsNov 23 2018

Decisions and confusion: the week in news

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Decisions and confusion: the week in news

If your head is spinning from the political will-they-won’t-they in Westminster this week, then take this moment to enjoy an entirely decisive round up of this week's news.

The big event on our calendar this week was last night’s Financial Adviser Service Awards, where many a decision was being made.

But before we get to the acceptance speeches and thank yous however, let’s see what else you may have missed this week.

1) Complaints decisions

Few people, perhaps merely those those living under a rock, would be unaware of the Women Against State Pension Inequality (Waspi) group and its cause.

We found out this week that the Parliamentary and Health Services Ombudsman (PHSO) has selected six complaints about the state pension age increase that will act as lead cases to set a precedent for thousands of others. 

Following this, minister for pensions and financial inclusion Guy Opperman put his head above the parapet to suggest there had been adequate communication about the age increase between 1993 and 2006. 

Once the ombudsman has looked into the claims, we will know whether any of the others will make any headway. The process has been incredibly slow going, maybe this will speed it up. 

2) Confused footballers

We’ve had plenty of unsavoury events come out of the world of football but this one is getting uncomfortably close.

Former top flight player Danny Murphy this week accused some financial advisers of "brainwashing" young footballers.

Mr Murphy told TalkSport about overdue reforms to the Professional Footballers' Association (PFA) and said one of the factors was the support – or lack thereof – offered to footballers on how to handle their money. 

He said the PFA had allowed footballers to fall victim to unscrupulous financial advisers who exploited the fact they were ignorant of financial affairs

So much money pouring into the game – and out to the players – has made the problem more acute, Mr Murphy said. 

Earlier this year, the City of London Police launched a criminal investigation into Kingsbridge Asset Management, an intermediary that offered investment advice to footballers and high net worth individuals between 1992 and 2010.

3) FCA sharpens its teeth

We remember a time when everyone was talking about being Mifid II compliant... Turns out talk is back in town.

This week, advisers were warned about not complying with the product governance element of the European regime, with some estimates suggesting only one in 10 advice firms is meeting the rules.

Not good enough, said Rory Percival, the former Financial Conduct Authority man, who knows his Mifids from his misfits.

He said it would be "daft" of the regulator not to look at this when it assesses suitability next year.

Time to get in shape folks.

4) Someone is watching you

That strange feeling that you are being watched...might be no strange feeling after all, as one customer of a big insurer has found out.

This week Zurich Assurance was ordered to pay a claimant £4,000 in compensation after "unfairly" placing her under the surveillance of a private investigator, according to the ombudsman. 

The case centred around a claim on a policy for severe back pain in November 2015, which had made Zurich suspicious so it instructed a private detective to gather further evidence. This is not illegal.

But the ombudsman suggested a second medical opinion or communication with a specialist might have been a more appropriate course of action. Too decisive Zurich.

5) Special circumstances

On the topic of compensation, steelworkers were told this week they could be receiving £50,000 each in compensation, the highest the Financial Services Compensation Scheme can award on such pension and investment losses. 

This is because their case might be classes as special circumstances, which gives the body the right to change the way calculates the compensation.

Fingers crossed.

And finally: the Financial Adviser Service Awards winners have been revealed