Where to go now - endowment?

SallyB_3

We've got an endowment which was purchased in 1988. The guy who sold it to us was an independent financial adviser. He sold us a policy with one of the big companies - and the policy is running at about £27k short. We've tried and tried to find this idependent chap - and have finally discovered that he became dis-associated with FIMBRA in December 1994 - which means that the financial ombudsman service do not have powers to investigate the claim.
They have infact told us, and I quote "The FSA (financial services authority) who regulate the industry, states that it is the selling agents who are responsible for advice provided at the time of the sale of the disputed product. You complaint therefore should be directed toward the company who sold you the policy, and cannot be placed towards "name" (the big company)"
We've tried to trace the agent, but all the letter which we have sent to him have been returned to us - not known at this address.
We've contacted the CAB and they don't have any advice for us either.
So - my question is this - PLEASE CAN SOMEONE HELP? I don't know where to turn to next.

Siani_Winwns

We had this problem, and were told by the Financial Ombudsman to complain directly to the company the endowment is with - in our case Standard Life. We did that and this morning had our compensation offer of £3500. Good Luck.

SallyB_3

Thanks for this. The thing is we started with the company the policy is with - Schottish Equitable - and they told us right from the start that they are not liable and will not look at any claim from us, because we didn't buy the policy directly from them.
This makes little or no sense to me, because it's to them that we pay the monthly direct debit!

dunstonh

Insurance companies will not pay out unless they were the company that was responsible for the advice.

This makes little or no sense to me, because it's to them that we pay the monthly direct debit!

It would hardly be fair for Scottish Equitable to pay up. They never asked you to take the policy out. They never recommended you took the policy out. All they got was an application in the post and set it up as instructed.

Complaints are about the advice given.

You have come to the end of your options. Some may say court action could be considered but its rare that it suceeds, let alone attempted.

silvercar

Had the same problem. Our then financial advisor sold the policy to us through his limited company. 5 years ago he closed the company so there is nowhere to turn. He, in the meantime, can carry on giving financial advise through his new company, which he'll no doubt shut if he gets too many complaints.

You follow all the advice, buy through an IFA who is not tied to any provider, then find you would have been entitled to compensation had you bought directly from the provider!

dunstonh

Thats why regulation was brought in. The Titanic sunk and many died after there were not enough life boats. Now ships carry enough life boats. Things happen, things improve to stop them happening again.