Thursday, June 2, 2011

FOS chief praises IFAs' complaints record - New Model Adviser® Edition - Citywire

FOS chief praises IFAs' complaints record - New Model Adviser® Edition - Citywire

This is frustrating, words fail me.
The FSA complains about a lack of feedback, everybody will know that I have been one of the busiest commentators on the unfairness of rules and regulations created by the regulators, well intended of otherwise.
This particular example of unfairness has not received a response, why?

From: Evan [mailto:evan@.]
Sent: 28 April 2011 11:25 AM
To: 'Treasury Committee'
Cc: 'Hector Sants'; 'margaret.cole'; 'natalie.ceeneyinancial-ombudsman'
Subject: Regulatory gaps
Following the High Court win for common sense in the matter of banks and PPI sales the FSA rightly claims to be closing the gaps with the use of principles.
There is one more gap that the FSA should be closing immediately, this relates to mortgage endowment policies which have either been sold or surrendered and will never be time-barred because the 'guidance' given to the FOS does not clarify the situation when claims come in after the aforementioned events.
Firms cannot time bar a complaint because both events preclude the use of red letters and 'dates' as required by the FOS which slavishly follows FSA rules and guidance, this situation could in effect exist forever and involve retirees having to fend off complaints and pay FOS fees of £500 or more until the day they die, or even until their estates are dispersed after which any claims will fall upon the FSCS which does not recognise the 15 year long stop despite the fact that the Limitation Act has not been repealed.
I hope this gap is closed very soon.

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