Act now on mis-sold endowments: new article

dunstonh

So again the question is who is looking out for the consumer as opposed to protecting the financial companies from the effects of their own bad practice?

With the current system, its the good financial services companies.

Whilst the current system continues to make the good companies pay for the mistakes of the bad and doesnt penalise the bad companies to any great extent, there is no incentive for the bad companies to improve their standards.

Has anyone got a list of companies that have gone out of business as a result of misselling mortgages and what percentage that is of the industry.

It depends on what you mean by out of business. Over 70 insurance companies closed their doors for new business around the years 2000-2003. They made their salesforces redundant A lot of support staff went with them and quite a lot have been bought out by venture capital companies with their brands being removed and combined into one big zombie company.

As is standard in the UK, it wouldnt be surprising to find the board members of those failed insurers getting big pay offs as part of the deal.

Jecca_2

I have been writing letters and filling in forms to complain about an endowment since June 05 - nearly a year. The pile is now 4" high and I have got nowhere. We are facing almost a 50% loss on an endowment due to pay around £50,000 in 2017. The Independant Financial Advisors have ceased trading but I managed to track them down. They have destroyed all their records and are not interested (of course!). Mind you, even the ex- IFA says he cannot understand why it is facing such a huge loss with 11 years still to run! I have written to everyone including the company the endowment is with and they say they are not responsible. I have written (many times) to the FSA, Financial Ombudsman and the FSCS. They cannot do anything for various reasons - the advisors are not insolvent, it was sold before a certain date, it was sold after a certain date.... I have heard it all!!! This is outrageous. My last resort is to write to my MP - but what good that will do I have no idea. I am also now looking for a company that takes on cases and you pay a % of the compensation (no win no fee) but those I have seen will not take it on if you have tried to deal with it yourself. AHGHAHGHGHGHHGH!!!!!!!!!!!!!!!!!!!!!!!!!
If anyone has any ideas I woudl be very grateful, if not at least writing this has been good therapy!!!!!!

Jecca_2

I have been writing letters and filling in forms to complain about an endowment since June 05 - nearly a year. The pile is now 4" high and I have got nowhere. We are facing almost a 50% loss on an endowment due to pay around £50,000 in 2017. The Independant Financial Advisors have ceased trading but I managed to track them down. They have destroyed all their records and are not interested (of course!). Mind you, even the ex- IFA says he cannot understand why it is facing such a huge loss with 11 years still to run! I have written to everyone including the company the endowment is with and they say they are not responsible. I have written (many times) to the FSA, Financial Ombudsman and the FSCS. They cannot do anything for various reasons - the advisors are not insolvent, it was sold before a certain date, it was sold after a certain date.... I have heard it all!!! This is outrageous. My last resort is to write to my MP - but what good that will do I have no idea. I am also now looking for a company that takes on cases and you pay a % of the compensation (no win no fee) but those I have seen will not take it on if you have tried to deal with it yourself. AHGHAHGHGHGHHGH!!!!!!!!!!!!!!!!!!!!!!!!!
If anyone has any ideas I woudl be very grateful, if not at least writing this has been good therapy!!!!!!

dunstonh

The Independant Financial Advisors have ceased trading but I managed to track them down. They have destroyed all their records and are not interested (of course!).

If they have ceased trading and were a limited company, then they have no reason to be interested. The liability ceases when the company closes. If sole trader/partnership, then they still have a liability even if the company is closed.

My last resort is to write to my MP - but what good that will do I have no idea.

If its being rejected within the law, then the MP cant do anything but sympathise.

If anyone has any ideas I woudl be very grateful, if not at least writing this has been good therapy!!!!!!

You havent given enough detail for me to be sure but yours sounds like it is being rejected because the company was FIMBRA authorised but closed and left FIMBRA before coming under the PIA (now FSA) remit.

Jecca_2

Thanks Dunstonh - I think you are right re FIMBRA - the paperwork I have does not say that the IFAs were a Ltd company but the partner I managed to contact said they were FIMBRA inspected and had no problems. I think i will have to put this one down to experience sadly - mind you even he cannot understand how the policy has "lost" 50% of its forecast value with 11 years to run!!! If it wasn't potentially libelous I would put in their name!!!

Anyway thanks again.

CaptL-S

Hi
I went through the Which system and sent off the letters (as have 2 endowments). Unfortunately I cant find the 2 companies that standard life say sold us them and therefore they arent liable for the problem? One bought 1988, 2nd 1992. I have got info from Standard life themselves about the policies the 1st of which involved Abbey National for the mortgage. would it be worth writing to them? Any further help would be greatfully received

Hugh_Shortfall

Hi folks, need a little help.

Bought my Standard Life policy in Nov 1989.
Have complained to both the FSCS and Standard Life themselves as the IFA from whom I bought the policy is no longer trading.

Have complained on the grounds that I am strongly risk aversive, was single and had no dependants at the time of the sale.

Turns out that this particular IFA working out of my local Halifax wasn't regulated by the FSA at the time, and in fact the ISB number quoted to me from Standard Life relates to regulation commencing in the mid 1990's .
I have asked Standard Life whether this company were regulated at the time of the policy sale to which they are adamant that they were.
I have checked this out and it has materialised that this IFA was actually regulated by the Institite Of Chartered Accountants, and not the FSA.

Do I have grounds for complaint to Standard Life for taking a policy from an apparently unregulated IFA, therefore taking away my protection as a customer ?

The FSCS seem to think so, and are unable to proceed with my complaint themselves as a result of the apparent non regulation.Standard Life say they have no responsibility. My IFA is long gone....I think.

Should I take my complaint up with the Institute Of Chartered Accountants ?

Any help much appreciated.

dreamylittledream

Huge Shortfall - accountants like solicitors could sell investments and were regulated by their recognised professional body (solicitors: The Law Society, charted accounts the ICA) until the FSA took over. So Standard Life have not done anything wrong.

In answer to your question you can only complaint to the institute of charted acountants of the firm are still in business. As they are not I'm afraid this is the end of the line...

Jorayner

Hugh Shortfall, I am in a simialr position with Standard Life. My IFA was not registed with the FSA when I bought in Oct 88. and does not seem to exist now.

The FSA advised me that Standard Life had a duty to make sure that people selling their products were regulated.

I am pursuing Standard Life at the moment. The FSA said if this is not successful to take Standard Life to the Ombudman for failing in their duty to check my IFA was regulated.

dunstonh

Jorayner wrote:

Hugh Shortfall, I am in a simialr position with Standard Life. My IFA was not registed with the FSA when I bought in Oct 88. and does not seem to exist now.

The FSA advised me that Standard Life had a duty to make sure that people selling their products were regulated.

I am pursuing Standard Life at the moment. The FSA said if this is not successful to take Standard Life to the Ombudman for failing in their duty to check my IFA was regulated.

Interesting comments as the FSA didnt exist in 1988. The IFA could have been a member of FIMBRA and as long as they ceased trading before 1994 (ish. cant recall exact date), then the FSA has no remit over them. Or they could have been an accountant giving advice, rather than an IFA or even a SIFA. None of which fall under current FSA jurisdiction (SIFAs came under FSA around 2001).

I think you have been fobbed off a bit from the FSA.