financial adviser reclaiming effects

papahape

Hi
Just curious as to if anyone knows can an Independant financial adviser be found at fault along with the bank for bad / wrong infortmation on PPI and loans.

And if you do reclaim does the annual payment for the insurance stop going to the adviser/broker ?

the reason i ask is that I have had bad financial advice in the past and it sort of grates on me that the adviser may still be able to claim the annual fee from the bank even after a reclaim .

dunstonh

Just curious as to if anyone knows can an Independant financial adviser be found at fault along with the bank for bad / wrong infortmation on PPI and loans.

An IFA carries liability for the advice they give in the same way. However, the main difference is that the banks didnt typically do an advice process but a sales process. So, lack the documentary evidence that the IFA should have to support their recommendation. This is why you see so few complaints at the FOS on advised cases compared to sold cases.

And if you do reclaim does the annual payment for the insurance stop going to the adviser/broker ?

Yes. Assuming that the complaint results in the product you have being voided and no longer being in force.

the reason i ask is that I have had bad financial advice in the past and it sort of grates on me that the adviser may still be able to claim the annual fee from the bank even after a reclaim .

Can you clarify what fee you think the bank is paying the IFA?