Customer complaint loophole criticised
A loophole that protects advisers authorised through accountants has been criticised by an IFA
A LOOPHOLE that affords advisers authorised through accountants the privilege of a five-year deadline for complaints has been criticised by an independent financial adviser.
Keith Williams, former IFA with Positive Solutions, revealed one of his clients raised a grievance about a pension switch suggested by another financial consultant ten years ago, New Model Adviser reports.
The Financial Services Authority directed the aggrieved to the IFA’s regulator, the Association of Chartered Certified Accountants.
But the body threw out the claim, citing the five-year long-stop protection for its members and leaving the pension holder out in the cold.
Williams blames the FSA for allowing the loophole to slip through the cracks, but the body has refused to comment.