Where to go now Financial Services Ombudsman

Bedlam

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262
Any one hav eexperience of the above? A friend of mine took out a bond through a Financial Advisor last year and realised recently after the Prime Tiome programme that what he thought he had was not in actual fact what he had.

When he went to the office of the Financial Advisor he discovered he was gone out of business

In the circumsatnces he wrote to the FSO to be told that as the Financial Advisor was no longer a regulated provider they could not help. Given that he ws regulated when the sale took place this appears strange. What course of action, if any is now left open to him?

Thanks

Bedlam
 

Bedlam

Frequent Poster
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262
Clubman,

The Advisor went out of business and there are no assests. I am more concerned about the fact that when the business was done it was done through a regulated firm.

The fact that it is no longer regulated should not result in somebody being left high and dry

Bedlam
 

ontour

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1,038
Are you confusing 'regulated' with 'bonded' or 'insured'. It would be my understanding that a regulator would set guidelines and have mechanisms to enforce these. They would not be responsible for the actions of those they regulate.

Was the financial advisor trading as a limited company or a sole trader? Would this have an implication on the ability to pursue the individual?
 

Brendan Burgess

Founder
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39,590
Check the status of the advisor with the Financial Regulator.

If you have a valid legal claim against the advisor, then you will have a valid claim against their insurance company. As far as I know, all intermediaries must have insurance.

What is the nature of the claim? If the broker has done a runner with the money, you should be ok. If you claim that your friend was mis sold or badly advised, that will be more difficult to prove.

Brendan
 

Bedlam

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262
Brendan

The Advisor cancelled his regristration in Jan 2008 with the Regulator.
The client feels he was mis-sold, never received a letter our reasons why and wnded up in a ordinary fund when he understood it to be a guaranteed fund.

Do you feel the complaint should be directed now towards the Insurance Company?

Thanks

Bedlam
 

Bedlam

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262
Ontour

The FSO refers to the Financial Services Ombudsman which is the body setup to deal with disputes between "Regulated Firms" and consumers.

Bedlam
 

ontour

Frequent Poster
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1,038
Bedlam,

I possibly misunderstood from your initial post that you were inquiring whether you had redress to the FSO for the actions of financial advisor.

As pointed out by Brendan, you are more likely to be looking at pursuing the financial advisor in the hope that their professional indemnity insurance may settle your claim.

The purpose of the FSO is arbitration and the other party no longer exists as a financial advisor. The FSO seems to be more appropriate to financial service providers who want to stay off the Joe Duffy show.
 

moneyminder

Registered User
Messages
21
He might have had professional indemnity insurance. If you launch proceedings through a solicitor you'll find out soon enough. You'll have to prove a loss though!
 
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