Posted on by Nigel Ross-Scott

Press Release

 

PIMFA calls for a review of FOS past cases and training regime

13th March 2018

Following the operational problems highlighted from the recent Dispatches investigation into the Financial Ombudsman Service (FOS), PIMFA has called for an immediate, independent review of past cases where there is any doubt as to the outcome, especially in light of the evidence showing a lack of training and competence for FOS staff when dealing with complex pension, advice and investment related cases to ensure consistent outcomes as has previously been raised on numerous occasions.

FOS plays a vital role in cementing consumer trust in financial services, acting as a third party in which both sides can have confidence. They are dealing with an extremely high, growing annual case load – over 1.4 million PPI cases alone since 2010 – therefore its productive operation is essential to ensure best practice throughout our industry and to help promote a culture of savings and investment.

Liz Field, CEO of PIMFA, the UK’s leading trade association for the personal investment management and financial advice sector, said:

“The issues identified by the investigation are obviously cause of concern for the industry and need to be dealt with seriously. It is imperative that individuals feel confident they can seek redress if something has gone awry to avoid severe detriment to individuals lives. We therefore support the call for a review of past cases that remain questionable in a bid to prove that cases have been dealt with correctly.

PIMFA also call for an urgent review of the FOS training regime to ensure that it’s staff have sufficient knowledge when dealing with complex pension, advice and investment claims they receive. We recognise that the mounting case load is putting pressure on staff who in most instances are working hard to achieve the fairest outcomes. However an evaluation of internal culture is essential to deal with issues identified such as the obvious lack of necessary training and the setting of unachievable targets, which seriously impacts the decision-making process.

Any planned extension to the remit of FOS should be suspended until we can be assured that staff have the necessary knowledge to deal with the subject matter competently to achieve just decisions.

These fundamentals need to be resolved to ensure that clients and firms can access a sustainable, impartial, evidence based dispute resolution model.”

<ENDS>

Notes for Editors

About PIMFA – the Personal Investment Management & Financial Advice Association

  • PIMFA is the UK’s leading trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
  • PIMFA represents both full and associate member firms.
    Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families, to charities and pension funds, all the way to trusts and companies.
    Associate members provide professional services to the PIMFA community.
  • PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena.  Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
  • PIMFA was created in June 2017 as the outcome of the merger between the Association of Professional Financial Advisers (APFA) and Wealth Management Association (WMA) – read more.

Contact

For further information on this release or other press matters please contact: