Endowment Claim Question from FSCS

tm3135

Can anyoe help me with a question that the FSCS are asking regarding my claim for a mis sold policy that has been on going for a few years.
Q - Standard life have informed us that your policy was originally in a sinle name(i was not maried at that time and the house was in my name) but PCM was added to the policy in 1994. As such i am required to ask if he was added to the policy on the advice of the original selling agent or whether you made the decision yourselves.
Why would this be important and more importantly what is the correct response?

dunstonh

Why would this be important and more importantly what is the correct response?

The correct response is the truth.

The question is being asked because adding someone to an endowment policy was not a simple transaction. It would have altered the terms and may have even resulted in the policy being re-issued. If an adviser was involved, the transaction is such that the adviser dealing with it then has liability for advice. Whereas if you did it, without advice, then it changes things as it becomes an execution only or direct to provider transaction where no adviser is liable for the advice (as there was none) and therefore the FSCS don't have to pay out.

It's likely that the FSCS have asked Std Life as well if they can tell from their paperwork if the transaction involved an adviser or not. However, they are also asking you. Partly in case Std Life dont have the information and partly to see how credible you are with your information. Std Life should be able to tell if an adviser was involved as they will have information on where the amendment forms came from (i.e. from you directly or from the adviser).

I would estimate that most of the FSCS decisions are based on assumptions and balance of probability rather than absolute fact. So, it is important to make sure when dealing with the FSCS that you are credible. If you get caught telling porkies or show a lack of recognition of events then it will work against you.

tm3135

Thank you, my attempt is not to be dis-honest or decieve, I have no re-collection at all on whos decision it was. Appreciate the response at least i underatand why the question was being asked.

dunstonh

Tell them then that you don't know. However, be wary that if you use the "don't know" or "can't remember" reason too much that it will too work against you. Especially if you have excellent recollection of what was said during the initial meeting.

I wouldn't want to work at the FSCS and make the decisions they make. They have so little to go on most of the time and it really comes down to credibility more often than not.