Help with endowment complaint please

bungalowbill

Hi, nearly newbie here...wondered if anyone could help. In the process of complaining, original advisor & company now not around, so ended up with my claim being directed to sesame. (not sure whether they've taken over original company). had a 16wk letter about 3 months ago, and then nothing. Rang them, and the guy said he had just been assigned my case. He asked all sorts of questions about current mortgage etc, interest rates, and then I've heard nothing else.

questions are -
Is he independent if he's working for sesame?
Why the big delay.... i thought it was supposed to take 8 wks, but they just kept sending me 4wkly letters saying it isstill pending.
What should i do now..?

Hope someone can help,

Thanks

dunstonh

In the process of complaining, original advisor & company now not around, so ended up with my claim being directed to sesame. (not sure whether they've taken over original company).

Sesame do not own any IFAs or IFA firms. They are just a network.

Is he independent if he's working for sesame?

The complaints handler will be an employee of Sesame. He is not an advisor and the independent tag has nothing to do with it. Sesame are just a supplier of IFA services to IFA firms. The IFA was obviously independent but bought services through sesame. There are a number of companies that offer services like this. They are known as networks, Sesame being the biggest of them. It allows smaller IFAs to compete with the big ones by combining their buying power. The network also take on the administration for complaints as one of the services.

Why the big delay.... i thought it was supposed to take 8 wks, but they just kept sending me 4wkly letters saying it isstill pending.

If a complaint comes in, Sesame request the client file from the firm. They will also contact the advisor. Now in your case, the firm no longer exists. However, when the firm closed down, they would have sent the client files (or copies) to the network. These are probably sitting in some big warehouse. They would also contact the advisor (or ex-advisor) as complaints do now follow the advisor. This gives the advisor the opportunity to answer a number of questions about the advice process and what was/wasnt said.

I would think that the advisor response is what is holding it up. Especially if they are no longer in the industry (it is a shrinking industry).

What should i do now..?

Wait for a bit longer. It is possible that the firm was a limited company, in which case referral to the FSCS may be required. If the firm was a sole trader/partnership, the advisor/sole trader/partners still have liability so they will need to be found.

16 weeks on an endowment complaint is not really a long time when you hear of people waiting a year or two.

mbamick

Hi Bungalowbill,

I have just finished helping my friend with a pension-misselling case through Sesame. It took about a year to get an answer from them, and they needed to be pushed every step of the way. I sent EVERY letter by "signed For" delivery, so that I could use the Post Office's website to confirm receipt by the company.

At one point, they refused to review the complaint - stating that The Limitation Act 1980 and Latent Damage Act 1986 exempted them from reviewing the case. But when I dug a little deeper into both acts, and supporting case law, I found that Sesame had only quoted those elements that supported their position. Even after I pointed out those aspects that offered a comprehensive position on both acts [which suggested that there was a case for review] they refused to budge - and pointed me in the direction of the Ombudsman.

3 months later, the Ombudsman found in our favour - but it still took another 3 months for sesame to react. But a PERSISTENT and DILIGENT approach should see you through.

If you have any questions, then feel free to email me. I obviously cannot offer any financial advice, but am happy to "share notes" on progress & stumbling blocks. As an aside, I also had a succesful complaint for endowment misselling against Abbey. That was done & dusted in less than 12 weeks.
Good luck.

SPENCER

I too have a complaint being handled by Sesame, the IFA I purchased the endowment from is apparently now part of this company. At the beginning of the claim I asked for a copy of my file but they wrote back and said they hold nothing but if I think someone else might hold correspondence, ask them!. All very confusing. They just keep writing saying they are looking into. Last letter I received was what they called an "8 week letter". It says if I do not receive a reponse within this period I can go to the FOS.

They don't seem very professional. Surely before I pass it to the FOS they should have an answer as to whether they agree or not if I was mis-sold?.

bungalowbill

Mmmmm, thanks all for your help

I certainly haven't had anything from sesame to impress me...it was the day after I rang them that this 'advisor' suddenly got my file. The 16 wk letter is dated June, and I've had nothing since so perhaps I'll do a little chasing next week. People on these threads seem to have things setled instantly or not for ages. Perhaps I'm going to fall into the 2nd one.

Thanks again..

dunstonh

Half the problem is that people dont know the proceedures involved. From the posts above assumptions have been made that the IFAs worked for Sesame which is not the case. That Sesame are liable for the settlement, which is not the case. No mention has been made of Windsor who are the insurance company that pays the settlement, subject to excess. That excess having to be paid by the advisor (or advising firm).

Im not saying they are perfect but I know full well that the chain of people that need to be contacted is time consuming and if one person holds it up, it can hold it all up.

Sesame only came into existence just over a year ago. Its almost certain that no endowments have been sold by any IFA who is a member of the Sesame network. However, the endowments would have been sold under the legacy networks of DBS, IFA network, Countrywide Independent, Kestral and Financial Options. Each of these had different requirements and standards, along with different computer systems and records.

So, you contact Sesame, they find out which IFA firm did it, which legacy network it was with, where the client files are, where the IFA firm directors/owner is, where the advisor is, Windsor PI insurance company is contacted as well. So all these get contacted and asked to respond. If the IFA is no longer in the industry, its damned hard to get them to respond but they have to be given a chance.

Then you have to find the client files. There have been many problems on the DBS side of the network with client files gone missing. So they have to search for these. This is a massive undertaking. Once it all comes together, they then look for ways to reject the claim.

I dont want to say that bad service is acceptable or anything else but you do need to be aware that when an advice firm has closed for business, it is a lot harder compared with one that is trading. Indeed, you are probably lucky that it is with a network and not directly regulated as you would find it even harder to begin with.

bungalowbill

Ok thanks for all the info...nice to have someone who knows what they're talking about. Just feel out of my depth, so thanks for all the advice. Wasn't sure whether the chap from sesame was on my side or not...

thanks.

defender_of_the_weak

Bungalowbill, file your case with FOS as you are allowed to do after 8 weeks.
I accept Duntons comments about how hard it is for sesame to resolve a complaint but that is their problem not yours, thats what they have been charging he network members for, for the last however many years. If, in whatever previous guise/network it was, they have failed to maintain proper records and standards that is their fault not yours.

Going to the ombudsman really sharpens the sesame mind and gets the case moving we have found

bungalowbill

mmm..interesting thought, probably will do as you recommend. thx

FOSman

Yep, just take it to the FOS. Sesame are well known within the FOS, and it will be quicker if you just progress the complaint that way.