Act now on mis-sold endowments: new article

Jorayner

dunstonh wrote:

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.

Maybe I don't understand things as well as you do, which is probably why you are an IFA and I am not.

It is my impression that they should have been registered , and have a SIB? number. They don't have one - the FSA searched the historical database. I thought they had to be registered with someone (not sure who) from April 1988.

Standard life are unable (not unwilling) to provide me with their number despite the fact they paid them commision.

sainthalo

Hi everyone, I have just written to my dads conveyancing solicitors who sold him an endowment which is facing a 14k shortfall. my father (who knows nothing about financial services and products) kept all the paperwork from his solicitors firm who he used to buy the house but the only document relating to the policy is a letter thanking him and enclosing a cheque sharing the commission and asking him to make further investments on a commission sharing basis.

I read the english law societys guidance on endowment misselling on their website and it seems to suggest that the question of misselling should go on the evidence. My question is what if the firm and my father essentially have no papers - if there is no documentary evidence then can a claim still succeed?

dreamylittledream

sainthalo wrote:

Hi everyone, I have just written to my dads conveyancing solicitors who sold him an endowment which is facing a 14k shortfall. my father (who knows nothing about financial services and products) kept all the paperwork from his solicitors firm who he used to buy the house but the only document relating to the policy is a letter thanking him and enclosing a cheque sharing the commission and asking him to make further investments on a commission sharing basis.

I read the english law societys guidance on endowment misselling on their website and it seems to suggest that the question of misselling should go on the evidence. My question is what if the firm and my father essentially have no papers - if there is no documentary evidence then can a claim still succeed?

When was the policy sold? If it was before April 1991 the Law Society have no jurisdiction to order an award of compnsation for the mis-sale of a financial product by a solicitor.

As the product was sold by a solicitor you can not refer the case to the FOS.

The Law Society are also loathe to uphold complaints where the file has been destroyed as their own guidelines at the time stated that files need only be kept for six years. This is not hard and fast guidance but is very different from the stance adopted by the FSA/FOS.

I would also suspect the fact that commision was shared would not strengthen your case.

Ha your father made an initial complaint to the solicitor? This needs to be done before you can even consider refering the case to the Law Society.

sainthalo

dreamylittledream wrote:

When was the policy sold? If it was before April 1991 the Law Society have no jurisdiction to order an award of compnsation for the mis-sale of a financial product my a solicitor.

As the product was sold by a solicitor you can not refer the case to the FOS.

The Law Society are also loathe to uphold complaints where the file has been destroyed as their own guidelines at the time stated that files need only be kept for six years. This is not hard and fast guidance but is very different from the stance adopted by the FSA/FOS.

It was arranged in 1990...! Does this mean the FSA should help? they referred me to the Law Society though and knew it was 1990!!

Might be academic but reading lawsoc link below it seems lawsoc shd be following the assessment methods used by the fsa from now on wherever they can: http://www.lawsociety.org.uk/aboutlawsociety/how/policydecisions/view=article.law?DOCUMENTID=272157

I would also have no hesitation issuing legal proceedings especially if compensation likely to be within small claims limit of £5000.

dunstonh

It was arranged in 1990...! Does this mean the FSA should help? they referred me to the Law Society though and knew it was 1990!!

Might be academic but reading lawsoc link below it seems lawsoc shd be following the assessment methods used by the fsa from now on wherever they can: http://www.lawsociety.org.uk/aboutla...UMENTID=272157

FSA didnt regulate SIFAs then so NO.

I would also have no hesitation issuing legal proceedings especially if compensation likely to be within small claims limit of £5000.

Good luck. you will need it.

dreamylittledream

sainthalo wrote:

It was arranged in 1990...! Does this mean the FSA should help? they referred me to the Law Society though and knew it was 1990!!

Might be academic but reading lawsoc link below it seems lawsoc shd be following the assessment methods used by the fsa from now on wherever they can: http://www.lawsociety.org.uk/aboutlawsociety/how/policydecisions/view=article.law?DOCUMENTID=272157

I would also have no hesitation issuing legal proceedings especially if compensation likely to be within small claims limit of £5000.

Nope sadly that means no-one in the main stream complaints process can help you. Its something of a loop hole in the rules (could be worse, The Law Society of Scotland never gained similar powers, so anyone who was sold an endowment by a Scottish Solicitor before 2001 can not enforce an order for endowment mortgage redress)

The Law Society regulated solicitors up to 2001 but although solicitors came under the 1988 'A day' rules, the Law Society did not gain powers to award compensation for mis-sold financial products until April 1991.

I'm afraid court action is probably your last resort

Abbo_2

Hello

My partner took out an endowment policy with her (now ex-) husband several years ago. Part of the financial settlement of their divorce involves cashing in the endowment and dividing the money invested thus far between them.

My question is, if that endowment is cashed in is it still possible to act on it in an attempt to get compensation for it having been mis-sold?

Thanks very much

Ab

eddmac2

When getting my mortgage, 1991, I took the offer of free mortgage advice from the law society for Northern Ireland. The receiving of this advice had been suggested to me at the time by my solicitor.
Up to this point I had a repayment mortgage for my previous home.
I can't be sure today what advice they gave me and I accidentally destroyed the paperwork some years back. Basically I ended up with a Norwich Union Endowment through a local building society.
Last year, when my council consumer advice office where giving instructions and assistance to those people challenging for the mis-sold endowments, I called and told these details to one of their advisers. Unfortunately this was more than the consumer councillor could wish to deal with. Maybe the mention of Law Society frightened him off.
Where should I start and which path of action should I follow, to try and resolve this issue?

sainthalo

dreamylittledream wrote:

Nope sadly that means no-one in the main stream complaints process can help you. Its something of a loop hole in the rules (could be worse, The Law Society of Scotland never gained similar powers, so anyone who was sold an endowment by a Scottish Solicitor before 2001 can not enforce an order for endowment mortgage redress)

The Law Society regulated solicitors up to 2001 but although solicitors came under the 1988 'A day' rules, the Law Society did not gain powers to award compensation for mis-sold financial products until April 1991.

I'm afraid court action is probably your last resort

Thanks again for your helpful replies. I could still complain to the Law Society though and get them to look into it. If upheld this could provide some evidential bearing on a legal claim which it looks like I will be forced to pursue.

Does anyone know of other people who have had to resort to the court process? I assume I would have to sue for negligence and work my way around the limitation act in that the damages and fact of negligence only accrued recently.

It also appears that I am going to have to do my own calculations - any idea how to do these? Maybe theres another website focussed on this area?

Thanks.

fatheralice

Finally got around to writing my letter, regarding a policy sold in 1997, thanks to the links provided on this site - recieved a letter offering me just shy of £3000 - so a BIG thank you from me!!:T :beer: