A firm of tax advisers has successfully defended a professional negligence claim despite failing to advise its client about the risks of a tax-avoidance scheme. The claim was defeated because the claimant did not show that he has suffered a…read more
FCA reviews advice suitability
The Financial Conduct Authority (FCA) is undertaking a major review of suitability of financial advice. It has contacted about 700 advisory firms to request client files. The regulator will assess the suitability of advice for investments, pension saving and retirement…read more
Wealth management firms failing to recommend suitable investment portfolios says FCA
One third of wealth management firms are failing to recommend suitable investment portfolios to their clients according to the Financial Conduct Authority (FCA). A thematic review by the regulator found improvement in practice since the previous review in 2012. However,…read more
Financial Ombudsman backs adviser over high risk investments
The Financial Ombudsman Service (FOS) has backed an IFA who advised his client on high risk investments. The decision supports lead ombudsman Caroline Mitchell’s claim that the FOS supports advisers “more often than not,” in reaching its decisions (see Brunel…read more
FOS personal pension complaints soar
Complaints about personal pensions to the Financial Ombudsman Service (FOS) have risen sharply according to new data. But lead ombudsman, Caroline Mitchell, says that the FOS supports advisers “more often than not,” in reaching its decisions. The FOS accepted 751…read more
FCA consults on insistent client rules
Advisers, worried that pension transfers for ‘insistent’ clients may impact their insurance or lead to complaints, have had their fears recognised by The Financial Conduct Authority (FCA). The regulator has asked IFAs to recommend how it can amend its rules…read more
Towergate delays £85 million miss-selling payments
Insurance broker, Towergate, has delayed plans to compensate clients who were miss-sold investment schemes and given poor pension transfer advice. Compensation payments were expected to start in the third quarter but will now start in the fourth quarter of 2015…read more
Accountancy practice liable for failed loans
A negligent accountancy firm has been found liable to pay damages for three failed loans, despite two of the loans having been repaid. The Appeal Court decision, in Swynson Ltd v Lowick Rose LLP, indicates how the courts may assess…read more
Disclaimers protect professionals against third party claims decides court
Professional advisers can rely on clear and unambiguous disclaimers to protect themselves against claims of negligence following a High Court decision. The Court threw out a claim by Barclays Bank that accountants Grant Thornton had been negligent in failing to…read more
IFAs – New Rules on Complaints from July
New regulations affecting the way complaints about IFAs are handled will come into force on 9 July 2015. The move will ensure that firms can meet the requirements of the European Union’s Alternative Dispute Resolution (ADR) Directive. The ADR Directive…read more