Endowment Dilemma - what price friendship?

Jumble_3

I have a couple of endowments bought back in the 80's from an old schoolfriend in his first job. I think I've got a clear argument for mis-selling and a compensation claim as he did no fact find, discussed no other options and suggested I would end up with a tax free lump sum at the end of the period.

However, I'm reluctant to make a claim as he's still a close friend, and still works for the same IFA. And my understanding is that I have to send my claim to his company. And to date I've been uncomfortable raising the subject with him even to discuss the possibility for fear of it's impact on our friendship.

However, as I've just received a second red letter I think I need to decide whether to act now or let it go.

So my question to the helpful folks on this forum is: If my claim is submitted will my friend have to defend his actions against my claim, and more importantly will he and his company be liable to pay the compensation or does the insurance company pay this?

Any other guidance you can offer is welcome!

J

dunstonh

Your friend will be made aware of the claim you are making and will have the opportunity to supply documentation and his comments on what was said.

If the policy commenced before 1988 then you may not be able to claim as this is before regulation.

In the 80s, the requirements for a factfind were minimal and your friend may have done one without actually getting a factfind document out. Any financial advisor who has been doing the job for a while knows the factfind content in their head and can ask the questions and jot them down on a pad to complete the factfind document later. Experienced advisors will place the questions during normal conversation so you dont notice them.

The fine line you have is that did your friend suggest you may get a lump sum or did he say you would get a lump sum.

If compensation is agreed, then his company is liable to pay the excess on the claim. The excess is likely to be around £5000. Depending on his status within that company and the arrangements they have, he may have to pay that.