I F A s

georob

do ifa have to be qualified to give out advice?

payless

do ifa have to be qualified to give out advice?

Yes

http://www.fsa.gov.uk/consumer/pdfs/financial_advice.pdf
--
Generally IFAs should have FPC3 level qualification as a minimum ( or be supervised by some with that level)

Getting more complex , as over next few months FSA will also regulate Mortgages, General Insurance ( such as car, home) and Pure Protection / Non Investment Insurance plans.

The term "Independent" is also up for review.

do you have a reason for asking

georob

i have been "guiding my mother in law through a compensation calim for endowments.the company have said that they will pay her for the cost of advice can i legally charge her? or whats the options? she has to present an invoice to the company.they will reimburse up to £350 of charges

payless

Depends on what their conditions are, if it does not actaully state must be an IFA , you could try it.

it might slip thro' - but do not imply you an IFA or are authorised if you are not !

georob

thanks payless

dunstonh

The term independent has been resolved.  It can only be used by those who offer a "whole of market" option and offer the choice to pay by fee (although commission is still available as an option).   Those operating from a single provider, marketing group or a panel of providers (often called multi-tied) cannot use the term independent.

Anyone offering advice without being authorised by the FSA can be fined or face imprisonment.

Giving advice on the suitability of an endowment would be considered illegal without authorisation.   Guiding someone through an endowment mis sale claim requires no authorisation or qualification.  This is why you see many of these cowboy firms popping up saying they will "take on" the insurance companies in return for a share of the proceeds.  

I am very surprised that the company is agreeing to pay any advice charges because this is not in accordance with the compensation rules regarding endowment mis-sales.

payless

DD
I have seem a couple of forms that say they will offer payment to an IFA for assisting with the restructuring of the mortgage ( rather than guidance on claim) , and someone posted here that a major insurer did offer her upto £350 for IFA advice on the "current situation" when she queried a compo offer - but I did not see the actual offer.

dunstonh

DD
I have seem a couple of forms that say they will offer payment to an IFA for assisting with the restructuring of the mortgage ( rather than guidance on claim) , and someone posted here that a major insurer did offer her upto £350 for IFA advice on the "current situation" when she queried a compo offer -  but I did not see the actual offer.

Its good to see them offer it. Makes you wonder why though when it isnt a requirement. Perhaps it depends on the type of complaint and whether it is being classed as a standard FOS complaint or endowment mis sale complaint.