Endowment Claim refused as IFA went to prison for fraud

hamleje

In 1987 we took out enowment mortgage. We know we have a valid claim as the second endowment in 1988 was agreed by the FSA and a compensation claim of £170 was made (this endowment was for £7,500).

Like many other people we were told our endowment would pay off the Mortgage and pay us a surplus of £20,000 plus.

The FSA and the insurance company ie Friends Provident have flatly refused to look at our claim for mis-selling re the 1987 endowment siting the following reason. We have to deal with our IFA.

This is impossible as the company went bust with at least one of the directors serving time in prison for fraud.

We finally receiving a red letter from the insurance company on the 25/11/05 & the 06/12/05 which told us the policies values will be missed to the tune of approx £20,000. At this point we decided after taking legal advice. That advice was that the only option left to us was to attempt to get Friends Provident to listen to our claim for mis-selling by the above individual.

We passionately believe that friends provident and their compliance unit failed in their entirity to properly evaluate the credit worthiness and financial stablility of both the company "Anthony Howard Ltd" and "Cannon Financial Advisors Limited and its employees to be considered a creditable company, to represent fairly and ethically Friends Provident Insurance for their enowment mortgage products etc.

We are at an absolute loss as to what to do next as again even though we are repeating our selves the FSA and the insurance companies last statement to us and their final decision on the 19/1/06 was that the IFA who has been in prison for fraud and who's company no longer exists should deal with our claim.

We believe we have been completely and utterly dumped by the financial services industry through absolutely no fault of our own, HOW CAN ONE CLAIM COMPENSATION FROM A COMPANY WHO IS NO LONGER IN BUSINESS AS THEY WERE WOUND UP BY THE FINANCIAL SERVICES INDUSTRY AND THE FRAUD SQUAD.

Our question is has any one experienced this situation and been able to resolve it or can any one HELP!!

Judith and Malcolm

EdInvestor

Sorry to hear about this.

Unfortunately, before 1988 the financial services industry was not regulated as it is now. Thus, the IFA that (mis)sold you your policy is under no obligation to consider your claim.This would also be the case if the firm was still in business. The position is different with the 1988 endowment, as by then the new laws had been passed.

Large companies ( banks, BSs, endowment providers themselves) who sold policies pre 1988 will often consider a complaint on a voluntary basis.But this only applies if they actually sold the policy.Friends Provident has no liability or responsibility for this as it wasn't involved in the sale. Nor is it responsible for advisor companies, that's the job of the regulator.

I'm sorry, but it looks like you're at the end of the line, as the Ombudsman can't help and if the IFA no longer exists,you can't go to court.:(

If you'd like a view on what you can do now to limit the damage , post the following information about the endowment(s):

Guaranteed sum assured
Declared bonuses
Surrender values (ring up and ask)
Monthly premium
Maturity date
Any maturity projections you may have.

The position can usually be improved if you take the right action.

dunstonh

Ed is spot on. Legislation and consumer protection didnt exist in 1987 and only applies to cases sold after the introduction dates in 1988 (with a few exceptions to FIMBRA advisers which could be as late as 1994). So, whilst protection is very good post 1988. It is virtually non-existent before hand.

Your complaint hasnt been rejected because the person commited fraud. It has been rejected as there was no consumer protection in place in 1987.