Am I being Mislead as well as Missold

Kaz_3

I took my Endowment out about 12 years ago and received a letter saying there was a shortfall. When I went back to the adviser, he told me that the original company had closed down and that he was a new company now on his own and limited. He then suggested that I seek out his old partner and claim from him, but the trouble is that his old partner is out of work after leaving the business 10 years ago following a heart attack and living on benefits. Surely he shouldn't have told me to do this as how can I claim off someone who has nothing to do with business any longer when he (the other partner) is still in this type of business and trading from the same premises. I can't achieve anything other than losing money if I try and claim off someone on benefits. I'm sure the other guy must have some responsibility especially as he still holds my file from his previous business.

payless

The new company may haver taken over the responsibility, or the old company may have professional indemnity insurance -
otherwise see http://www.fscs.org.uk/ regarding claims against advisers no longer able to meet claims- although read
http://www.fsa.gov.uk/consumer/pdfs/endowment_complaints.pdf first
( they use a fund that regulated advisers pay into to cover these circumstances - although does appear that a number of fairly large firms have abused this system by closing down certain parts oftheir group, whilst otherr parts are still trading
( even possibly having taken management fees from the closed part)
http://www.fsa.gov.uk/consumer/10_WHATS_NEW/FIRMS/phoenixing.html

Sargey_2

I am in a similar position. They all seem to have changed their name or gone limited to escape justice. I can't get anything from the compensation scheme and was told to return to the advisor that sold me the policy. I have recently found out that my adviser (although she has changed her trading name) still gets renewal commission on my policy and still holds all my details. Looks like the same horse but a different jockey. Why should she still be being paid by my premiums yet not admit her obligation

payless

IMHO to continue to earn renewals without you being asked to sign a new agreement to this effect, implies that nothing has changed, so should be able to claim continuing liability to the original advice ( as I said IMHO, not saying regulators would agree)

dunstonh

The previous agency owner(s) can sign their agency over to another firm without transferring the liability and without requiring client signature. Ive had a couple of retiring IFAs do that with me.

Sargey_2

I haven't heard of this before. What is IMHO? Does this mean that I might stand a chance of claiming of off this advisor? I hope so because I really feel that I have been sent from pillar to post, and it is all so confusing to me. Are you saying that an advisor that changes his trading name is obliged to ask the policyholder if they are willing for a new company to take over their renewals and if she does not, she continues to take over liability? If this is the case, does the FSA recognise that - if the advisor hasn't done this - that she still has the liability. Sorry about the consusion but this really is a nightmare to me. I am struggling to pay my way as I am a single parent and I have nobody to help me. I really appreaciate any constructive help you can gibe me.

Froggitt

Why can you claim from the Financial Services Compensation Scheme?

payless

dunstonh wrote:

The previous agency owner(s) can sign their agency over to another firm without transferring the liability and without requiring client signature. Ive had a couple of retiring IFAs do that with me.

Not saying it can't be done ( although FSA do sometimes say clients must be individually informed at the time) - but that in my opinion - what is effectively an inhouse transfer should not be allowed to get around liability.

Also I personally think if you take on renewals on block ( such as taking over a firm's books on retirement) , rather than each client individually- that this should you should also be taking on any liabilities, in a similiar way to taking over the business

---

Yes FSCS is point of call- but please do give them the information as they may see it as a phoenix

Sargey_2

I didn't know what a phoenix was, so I've been to the FSA website and looked their description. Do you think it applies to any financial advisers or do you think it is only applicable to limited companies. This could be the first ray of hope in what has been a nightmare in getting this far. I really appreciate everybody's contribution.

Richie(UK)

Sargey wrote:

I haven't heard of this before. What is IMHO? ...

Hi Sargey,

IMHO = In My Humble Opinion

if you are feeling less (or not at all!) humble then just go for :

IMO = In My Opinion

HTH

PS. HTH = Hope That Helps

Sargey_2

Thanks for that. I've only had the internet for a few weeks so I'm not very savvy about what things mean. Everyone's help has given me fresh hope about getting some justice. Any further advice or suggestions will always be welcome