No Endowment Compensation because I was in RAF

ExGoldstar

Help!!!
I have just received a letter from the FSCS informing me that essentially because I was serving in RAF Germany (1991) I am not covered by the UK Financial Services Act for the following reasons-
1 The Firm Andrew Peat Finanz Consultants Gmbh part of Andrew Peat Financial Consultants Ltd. was not UK authorised at the time of the advice.
2 The investment business was not conducted in the UK.

It now seems as I am getting punished for being in the armed forces and why were these companies given permission to by the RAF to sell Insurance policies.

Is anybody in the same boat or have any idea on the way forward from here.

I am well hacked off to say the least

Arch-Angel

I think this has been highlighted by SSAFA, Airwaves and the like. I recall reading an article from one of these organisation (which one I can't remember - sorry!) a couple of months ago - just can't remember where. You could also try the Joint Service Housing Office (they have a web presence on the Army web site).

I can't promise the result that you want - however, this particular issue is being discussed.

good luck

jeffcarolt

Yes I am exactly in the same boat as ExGoldstar. Did you find out anything further? I have sort of given up after going through my claim and the FSCS telling me there is nothing I can do.

dunstonh

It isnt because you are in the RAF (or any other armed forces) that you are being rejected. It is because you were outside of the UK and the FSA, FOS and FSCS only cover the UK.

EdInvestor

The trouble is that in many other ways, sovereign bases are treated as British territory, or something very close to it.

It's a lot easier for people to be misled : but it's really something the Armed Forces/Defence Dept should deal with, not really a matter for the FSA/FSCS.

Ian_W

EdInvestor wrote:

The trouble is that in many other ways, sovereign bases are treated as British territory, or something very close to it.

It's a lot easier for people to be misled : but it's really something the Armed Forces/Defence Dept should deal with, not really a matter for the FSA/FSCS.

It's slightly digressing Ed but I believe the bases in Germany are not "sovereign" territory, any more than US bases in the UK are - UK military law applies to service personnel, their families and locals employed by the military in them - but I don't believe this would extend to matters like financial services.
Sovereign bases apply in Cyprus where 2 areas of the island remain British as part of the independence agreement in the 1960's, though whether the Financial Services Acts apply there is anyone's guess!!
However, back on thread, the subject does beg the question why the MOD allowed Financial Services companies who were not regulated in the UK to approach and sell products like endowments to service personnel when they were clearly intended as long term investments, probably supporting a UK mortgage - if not then, certainly in the future.
I wonder whether the services organisations have considered approaching MP's about this - possibly the Defence select committee to see if they could bring any influence to bear.

EdInvestor

... why the MOD allowed Financial Services companies who were not regulated in the UK to approach and sell products like endowments to service personnel when they were clearly intended as long term investments, probably supporting a UK mortgage - if not then, certainly in the future.

Yes, this is what I was getting at NW, use of the term "sovereign" wasn't correct in all cases, obviously.But quite often service personnel are exempt from local laws on the base AFAIK, which could easily lead them to believe that UK overall law prevailed, particularly if these advisors were allowed free access.

In fatc they could have been exposed to less protection than either UK onshore residents or the regulation protecting locals in the countries concerned.

I wonder whether the services organisations have considered approaching MP's about this - possibly the Defence select committee to see if they could bring any influence to bear.

Well worth a try IMHO.