Ombudsman ruled advice bad but IFA not acting

scdandem

I've recently concluded a lengthy (2 year) process with the Financial Ombudsman who has ruled that advice I was given on a Scottish Widows pension policy was bad. The IFA (still in business) has been ordered(?) to find out certain information from Scottish Widows and make specific calculations to work out the amount they need to compensate me for.

I was obviously pleased with the FO's ruling, but expressed my concern when they told me that they would now be passing the matter back to the IFA to handle. This is the IFA who gave me the bad advice in the first place, whom I no longer have any faith in, and whom I would assume is not overly eager to ensure I am fairly and swiftly recompensed. The FO said that once they had made their decision, the matter was no longer their responsibility...

This seems wholly unfair, and makes the FO seem rather pointless! Needless to say, the IFA, although initially responding to me to obtain authorisation to obtain information from Scottish Widows, seem to have completely misunderstood what the FO has told them to do (the FO were good enough to explain it to them again) and we now have radio silence! Two months have gone by and my correspondence to the IFA is falling on deaf ears.

Can anyone advise what might be the next step to take? The FO, when I expressed my concern this might happen, simply said I would have to go to Court if the IFA didn't comply. What, therefore, is the point of the Ombudsman if they have now powers of enforcement? Thanks in advance.

SonOf

and whom I would assume is not overly eager to ensure I am fairly and swiftly recompensed.

The redress method is defined and the PI insurer pays the bill, minus the excess. Probably less than a weeks earnings for a small IFA.

This seems wholly unfair, and makes the FO seem rather pointless!

I don't follow your reasoning. Whilst an adjudicator decision can be appealed by the IFA, an ombudsman ruling is final and is binding on the IFA. If the IFA firm refuses, then the FCA get involved.

Needless to say, the IFA, although initially responding to me to obtain authorisation to obtain information from Scottish Widows, seem to have completely misunderstood what the FO has told them to do (the FO were good enough to explain it to them again) and we now have radio silence! Two months have gone by and my correspondence to the IFA is falling on deaf ears.

2 months is not much. Once the letter of authority has been obtained and the insurer has looked at the case, they write to SW to ask for the information. SW are not the fastest and this is a request that requires a manual calculation. Once SW provide that, it goes back to the insurer who will then handle the claim. From what I understand, having never had to use it, is that the PI insurer will often tell the firm not to get involved in contact, wherever possible, until the claim is settled.

What, therefore, is the point of the Ombudsman if they have now powers of enforcement?

They dont need powers of enforcement. The rules already cater for that.

I would say you are expecting too much, too quickly and should give it a bit more time. That is unless it is one of these cold calling style companies that put in place unregulated investments. In which case, do not delay

scdandem

Thanks for this SonOf. It would have been useful if the FO had explained the process instead of seemingly saying 'we've done our bit'. Over the past 2 years I've at least felt that someone was batting for me and I knew what was going on, but now feel completely at sea. I have no idea who, if anyone, is dealing with the matter and no-one has ever mentioned the matter being handled by insurers, let alone who they might be or any contact details. It's completely unacceptable and very poor.

scdandem

"I don't follow your reasoning. Whilst an adjudicator decision can be appealed by the IFA, an ombudsman ruling is final and is binding on the IFA. If the IFA firm refuses, then the FCA get involved."

Who/what prompts the FCA to get involved? Are they told of the ruling? Do they follow up to ensure it is obeyed?

scdandem

Ps - how do you put the bit you want to highlight, into a quote?!

AnotherJoe

scdandem wrote: »

Ps - how do you put the bit you want to highlight, into a quote?!

Click on the button that's a quote symbol. Delete any extra text from the original you don't want. Type your answer below. (You can also type it above but most people here type below which makes sense to me anyway)