complaint about ifa

Tibbledom

If you wanted to post the situation at a later stage I am sure we could give you a view on whether the principle behind what had been offered was right, the “putting back in the same position as if you had not been badly advised” does apply but can mean different things in different scenarios. I understand you don't want to post this now.

Unfortunately there is still a lot wrong with the current system and there is a widespread mistrust of financial advisers and that is not just direct salesman but also commission based IFAs. The proposals by the Financial Services Authority (FSA) to make all IFAs effectively fee based in the future I am hoping means the FSA are getting their act together to improve things.

Unfortunately a lot of people when they think they have been mis-advised do not complain and so I congratulated you on taking up the matter and getting the case decided in your favour even if you are unhappy with the amounts awarded. You only have to look at the non-take up of offers of reviews during the pensions mis-selling scandal by investors who had been told to opt-out or not join their company schemes to realise people don’t generally complain. But the fact that they did not ask for a review or complain does not mean they were not mis-advised.

The way to judge advisers is not on complaints figures but on observing the sales process. I remember the mystery shopping exercise a few years back conducted by the FSA where over 20% of IFAs (and I mean IFAs) did not advise investors to pay off debt before putting money into investments.

Sometimes independent financial advice is needed and I would advise people wherever possible to use an IFA working on a fees basis. Check on their qualifications and do a bit of research before you seek advice and if you think what they are saying does not sound right challenge it, or find another IFA. Just because we think a proportion of IFAs, and we can all argue about how large or small that proportion is do not offer good advice, it does not mean all IFAs don’t offer good advice. There is some good information on the FSA website www.moneymadeclear.fsa.gov.uk about finding an independent adviser (and avoid the biggest mistake in seeking paid advice by making sure they are independent and can advise on the whole market).

This is just my opinion of course. And this is not a criticism in any way of IFAs posting on this site. A lot of useful information is posted by them.

dunstonh

Unfortunately there is still a lot wrong with the current system and there is a widespread mistrust of financial advisers and that is not just direct salesman but also commission based IFAs. The proposals by the Financial Services Authority (FSA) to make all IFAs effectively fee based in the future I am hoping means the FSA are getting their act together to improve things.

The problem is that most of the public cannot differentiate between the different types and the FOS have said that public perception, mainly brought about by negative media coverage, does not reflect reality.

No-one can claim its perfect and there is certainly room to improve. RDR should take care of that to some extent (although the FSA have backed down and allowed sales reps to keep the adviser tag which I think is a bad move). However, things are nowhere near as bad as they used to be and certainly not on the scale suggested by a few troublemakers here.

Tibbledom

dunstonh wrote: »

The problem is that most of the public cannot differentiate between the different types and the FOS have said that public perception, mainly brought about by negative media coverage, does not reflect reality.

No-one can claim its perfect and there is certainly room to improve. RDR should take care of that to some extent (although the FSA have backed down and allowed sales reps to keep the adviser tag which I think is a bad move). However, things are nowhere near as bad as they used to be and certainly not on the scale suggested by a few troublemakers here.

Thanks for making your opinion clear.

I would like to think I am not included in the "troublemaker" category for posting a genuinely held view.

westy69

it was actually due to advice on this board that i did complain which i am very gratefull for regardless of the outcome.
I feel at the moment that i have been very unlucky reagrding the ombudsman that i have been allocated as he seems to have taken a very strange view of things and as i said above being offered redress of less than the IFA made in commision makes no sense to me and sends out a very bad message in my opinion..... but thats life i guess
I oersonally will avoid IFA's in future although i am sure there are very good ones out there i would not risk it again.

whiteflag_3

westy69 wrote: »

its probably not appropriateto post it at the monent as its still on going.....

A basic outline of what went on would certainly help us understand your plight.

Ive been racking my brains for what could have happened where the redress was less than the commission?

dunstonh

I would like to think I am not included in the "troublemaker" category for posting a genuinely held view.

absolutely not. There are a couple of posters who slag off IFAs on the assumption all are bad. Complete chip on shoulder merchants where it doest matter what an IFA says, they will take the opposite view. And usually be very rude with it as well.

I oersonally will avoid IFA's in future although i am sure there are very good ones out there i would not risk it again.

Its only fair to say that it was another IFA that pointed out the issues and offered an opinion and advice that has led to you making the complaint. Dont let a minority cloud your judgement of the majority. Harold Shipman was a murderer. Does that make all doctors murderers?

as i said above being offered redress of less than the IFA made in commision makes no sense to me and sends out a very bad message in my opinion

You dont pay the commission. The provider does. Commission does not often reflect the charges. Some of the cheapest providers pay the most commission and some of the most expensive pay the least. What should be focused on is what you pay. Not what the provider pays. It is the cost to you that matters and that is where the redress will be calculated.

Lokolo

dunstonh wrote: »

absolutely not. There are a couple of posters who slag off IFAs on the assumption all are bad. Complete chip on shoulder merchants where it doest matter what an IFA says, they will take the opposite view. And usually be very rude with it as well.

Who on earth are you on about Dunston? I don't know of any such users on this forum :rolleyes:

westy69

dunstonh wrote: »

absolutely not. There are a couple of posters who slag off IFAs on the assumption all are bad. Complete chip on shoulder merchants where it doest matter what an IFA says, they will take the opposite view. And usually be very rude with it as well.




Its only fair to say that it was another IFA that pointed out the issues and offered an opinion and advice that has led to you making the complaint. Dont let a minority cloud your judgement of the majority. Harold Shipman was a murderer. Does that make all doctors murderers?



You dont pay the commission. The provider does. Commission does not often reflect the charges. Some of the cheapest providers pay the most commission and some of the most expensive pay the least. What should be focused on is what you pay. Not what the provider pays. It is the cost to you that matters and that is where the redress will be calculated.

i appreciate what you are saying and i am not saying that all IFA's are the same i am just saying that i would not choose to use one again after my experience thats just my personal choice and i also appreciate very much the advice given by the IFA who pointed it out

in terms of the commision i know i did not pay it but it seems wrong to me that the IFA who has been ruled to be incorrect should end up paying me less than they made from giving poor advice.....

i dont intend to give up yet as a final decision has not yet been made its just at the provisional stage i just hope i get a fair chance from the ombudsman to dispute his opinion.

dunstonh

in terms of the commision i know i did not pay it but it seems wrong to me that the IFA who has been ruled to be incorrect should end up paying me less than they made from giving poor advice.....

I wouldnt worry about that. Complaints go on your file for life. They have to be declared to any future employer in financial services. The PI insurer will consider that individual higher risk and charge them more and their compliance dept (if employed or use a network) could instigate a wider review of their cases of a similar nature to look to see if its a trend or a one off. If he is an employed adviser, he may not give two hoots but if he an owner/partner then he pays out of his own pocket and if there are multiple cases found, it could turn out to be expensive.

westy69

he i s a director, i have lost approx 20k and i will recieve approx 4k in redress as it stands at the moment.