financial advisor changing company name

reggie

We were sold a 17 year endowment policy by a ifa who was in charge of the company as the owner had died - our guy then took it over officially and changed the name. This is the same guy who dismissed our idea of switching to repayment promoting endowments as the best option! He works in the same building and but for the change of one letter it is all but the same company - however, the company who originally sold us the policy(he was the advisor we dealt with) no longer exists so we have no redress and will have to go to fsa.
How can he get away with this? Even if we get compensation he will not have to answer anything.

dunstonh

Not sure what you think the adviser has done wrong.

reggie

When looking at the paperwork although he signed his name, the other guy's name was on the paperwork - after he had died, although his wife still owned the company. As he was the one responsible for selling us the policy (when he was running and buying the company - before he changed its name) shouldn't he be responsbile for those policies he advised on? Coupled with this is the obvious bad advice we were given - it seems like his back is well and truly covered.

dunstonh

Was the old company a limited company or sole trader/partnership?

As he was the one responsible for selling us the policy (when he was running and buying the company - before he changed its name) shouldn't he be responsbile for those policies he advised on?

If he was an employee, then its the company that employs him that is responsible. They have the liability. How and where that liability is now depends on the company status.

reggie

The company has ceased to exist so I think there is no recourse with them, just have to accept that. Thanks.

dunstonh

No you dont. If the old company was a partnership, the partners have a lifetime liability on the advice given, even if the company has ceased to trade.

If the old company was a limited company, then the liability is passed to the FSCS. The FSCS may decide that the new company has tried to shirk it's responsibilities and get them to pay it (these companies are known as Phoenix companies). If not, the FSCS would investigate the complaint and its poor sods like me that have to pay out on successful claims.