In its 2014/15 business plan published this morning, the Financial Conduct Authority (FCA) said it will “consider the case” for a 15-year long stop on complaints to the Financial Ombudsman service for personal investment firms.
Chris Hannant, director general at APFA, welcomed the news, and the fact that the regulator has stayed true to its word: “The then-FSA promised it would investigate the case for a long stop in 2014/15 and that is what we are going to get.
“APFA has campaigned hard for this for some time, having launched its Fair Liability Campaign with Zurich back in 2012, so it’s a positive sign that the new regulator is listening to the concerns of the advice industry. We think a 15-year long stop would improve the ability of advice firms to seek capital investment, leading to a stronger sector overall – which will ultimately be to the benefit of consumers.
“We look forward to responding to the FCA’s consultation in due course.”
Helen Turner, group distribution and development director at Tenet, added: “Tenet is delighted that the regulator has committed to considering the case for a time limit on complaints in its latest business plan. Uncapped liability for advisers is a serious issue for our industry and it’s time this was addressed.
“We have been working alongside Zurich and our trade body APFA to maintain both awareness and pressure in the run up to the publication of the FCA’s business plan and now need to convince the regulator that this is in the best interests for advisers and consumers in promoting a healthy and sustainable future. Our ‘fair liability for financial advice’ e-petition has attracted almost 5,000 signatures since July last year, proving that this is an issue close to advisers’ hearts.”