FOS rejects complaint from client unaware of commission for decade

clock

A client who protested about commission being taken from his pension without his permission and without receiving ongoing advice in return has had his complaint rejected by the Financial Ombudsman Service (FOS).

The Ombudsman ruled that, as the client's adviser - Fiscal Perspectives Independent Financial Advisers, later trading as Justamo Financial Planning - had inherited the servicing rights to the plan in 2002 without liability, it could not be held responsible for the suitability of the original advice given or any failure to make the client aware of commission payments.

This would instead have been the responsibility of the initial adviser, it said.

The Ombudsman said it was unfortunate that the client did not become aware of the commission being taken from his account until 2012, and noted that Justamo had made several attempts to contact the client, a claim the customer rejected.

In respect of receiving ongoing advice, it added that, had Mr D contacted Justamo, financial advice would have been available to him.

"I understand that [the client] feels very strongly about the fact that he was not made aware of the manner in which commission would be deducted from his plan," the Ombudsman said.

"However, Justamo cannot be held responsible for this as it did not give the advice; it only acquired servicing rights to the plan in 2002, it did not inherit liabilities. It would have been the responsibility of the initial adviser to make Mr D aware of the commission payable on the policy."

More on Regulation

CII to reduce headcount by eight to 'deliver better outcomes'

CII to reduce headcount by eight to 'deliver better outcomes'

Forming plans to streamline processes and services

Isabel Baxter
clock 26 March 2024 • 1 min read
BIBA names Julie Comer as head of compliance

BIBA names Julie Comer as head of compliance

Helping members with compliance queries and concerns

Jaskeet Briah
clock 20 March 2024 • 1 min read
FCA unveils measures for more transparent enforcement cases

FCA unveils measures for more transparent enforcement cases

Consultation process initiated

Sahar Nazir
clock 27 February 2024 • 2 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read