Given that PanaceaIFA alerted the Fos to research indicating two-thirds of IFAs had been falsely accused under the slightly more arduous ‘two-stage’ Fos complaints process, it is baffling that the financially hard-up and ethically light of heart are being effectively incentivised to claim against their IFA.
While undoubtedly some consumers are indeed wronged by financial service providers and therefore thoroughly deserve to be treated fairly and swiftly and recompensed by the Ombudsman, the existing one-way bet that is the current Fos system is a joke.
As I have mentioned in previous posts - Lies, expensive lies - the system will only work if compensation is not perceived as the only true ‘risk-free’ investment in town. There must be a penalty introduced for those found to have unfairly made an allegation that the Fos has rejected.
Not only would this be treating all participants fairly - not just one group, the customer - but complainants that have a genuine case to be answered would be addressed far more swiftly without the system being clogged by chancers with £150,000 glinting in their eyes.
Otherwise, under the current Fos system, those so inclined will unabashedly flock like moths to the Fos money-pit flame, allowing the FSCS levy recipients to pick up the tab.
