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Reopening a closed Financial Ombudsman case?
whitefield_2
Posts: 5 Forumite
Hi Folks
I am new here, and this is a bit complicated so I will try to keep it short.
A number of years ago we took a company to the Fin Ombusman and won the case, getting our money back from a dodgey investment. The company is trying to get the money back from the IFA who sold the investment and the IFA is now bothering us, saying he wasn't consulted by the company when they paid out the money. He says that he can get the case reopened (due to a loophole) and it would cost us a load of money and our house could be in jeopardy. He wants us to release the file on this case so that he can take it further.
Question is: Is he bluffing or does the loophole exist? Can our house be in jeopardy??
Thanks
I am new here, and this is a bit complicated so I will try to keep it short.
A number of years ago we took a company to the Fin Ombusman and won the case, getting our money back from a dodgey investment. The company is trying to get the money back from the IFA who sold the investment and the IFA is now bothering us, saying he wasn't consulted by the company when they paid out the money. He says that he can get the case reopened (due to a loophole) and it would cost us a load of money and our house could be in jeopardy. He wants us to release the file on this case so that he can take it further.
Question is: Is he bluffing or does the loophole exist? Can our house be in jeopardy??
Thanks
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Comments
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Can you ask the original fin omb if this can happen
good luck:cool: hard as nails on the internet . wimp in the real world :cool:0 -
Consult a solicitor before saying or doing anything further.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
Fin Ombudsman said they wouldn't open the case, but maybe the person I spoke to doesn't know about the loophole, they are generally not well known and this IFA has been on the case for a number of years (apparently).
We would get a soliciter, would legal expenses insurance cover this?0 -
whitefield wrote: »A number of years ago we took a company to the Fin Ombusman and won the case, getting our money back from a dodgey investment. The company is trying to get the money back from the IFA who sold the investment and the IFA is now bothering us, saying he wasn't consulted by the company when they paid out the money.
This seems a little odd. The FOS rules state that you need to bring the claim against the company which sold you the investment, not the company which provides the product.He says that he can get the case reopened (due to a loophole)
This may be possible if an error was made originally.and it would cost us a load of money and our house could be in jeopardy.
This sounds like scare tactics.He wants us to release the file on this case so that he can take it further.
I wouldn't do this at this stage.It would be helpful if you gave some more details about the original case.Trying to keep it simple...
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whitefield wrote: »Fin Ombudsman said they wouldn't open the case, but maybe the person I spoke to doesn't know about the loophole, they are generally not well known and this IFA has been on the case for a number of years (apparently).
We would get a soliciter, would legal expenses insurance cover this?
I would hope so, but you'd have to check your policy/check with the insurer. If you do take legal advice and find that this IFA character was in fact bluffing, just to get you to release information to him, then please do report him to the FSA.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
Sorry EdInvestor, I didn't express myself very clearly. The IFA was working for a company at the time he sold us the investment. It was this company who paid out the compensation as it was missold to us, they are now trying to reclaim the compensation from the IFA (as he was the one who did the misselling). The IFA feels he has grounds to complain because he wasn't consulted before the company paid out the compensation as directed by the Fin Omb. (He will have provided all the files etc relating to the case, so quite on what grounds he can complain I'm not sure)
The main reason the investment was missold is that IFA took a profile and found we were low risk investors, however he sold us a policy that was medium/high risk. We are elderly people with no income other than a small pension and the money we invested was a legacy left to us by our mother, we needed a low risk investment. The Fin Omb ruled in our favour as they said the IFA tried to fit our risk profile to the product rather than the other way round.
We are now really worried about what this IFA can do, and his behaviour is unprofessional, unethical and borders on harrassment.
I hope this makes it clearer.0 -
The FOS will only re-open a case if substantial new evidence comes to light that could swing the decision or there is a good reason why you left it longer than 6 months (incapacitated is the really only case that goes down as acceptable there.The IFA was working for a company at the time he sold us the investment. It was this company who paid out the compensation as it was missold to us, they are now trying to reclaim the compensation from the IFA (as he was the one who did the misselling).
That sounds like the IFA was a network member. If he was an employee then the employer takes the liability, not the IFA. If he was a network member, the network takes the initial liability but claims it back from the IFA under the terms of their agreement.The IFA feels he has grounds to complain because he wasn't consulted before the company paid out the compensation as directed by the Fin Omb. (He will have provided all the files etc relating to the case, so quite on what grounds he can complain I'm not sure)
It doesnt matter what the IFA feels. The network would have the client files and if the client files do not justify the recommendation then what can he provide after the event that can alter that?The main reason the investment was missold is that IFA took a profile and found we were low risk investors, however he sold us a policy that was medium/high risk. We are elderly people with no income other than a small pension and the money we invested was a legacy left to us by our mother, we needed a low risk investment. The Fin Omb ruled in our favour as they said the IFA tried to fit our risk profile to the product rather than the other way round.
Which seems quite fair and correct. It is the IFAs responsbility to match the product to the risk profile. No-one elses.We are now really worried about what this IFA can do, and his behaviour is unprofessional, unethical and borders on harrassment.
He cant do didly squat to you. His concerns are with the network. Not you. If he is still licenced then he is breaching FSA rules in his actions and you should report him to the network and the FSA.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
whitefield wrote: »We are now really worried about what this IFA can do, and his behaviour is unprofessional, unethical and borders on harrassment.
You have nothing to worry about, the complaint is all in order.Report this IFA to the FSA.Trying to keep it simple...0 -
Many thanks for your time and reassuring words. We will try not to worry about it. I know we should report the IFA to the FSA but quite frankly just want a quiet life.0
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I know we should report the IFA to the FSA but quite frankly just want a quiet life.
Perhaps report it to the network then. Let them deal with it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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