The Financial Ombudsman Service (FOS) has ceased to accept new complaints from policyholders at Equi...
The Financial Ombudsman Service (FOS) has ceased to accept new complaints from policyholders at Equitable Life until the fate of its proposed compromise deal, due to be voted on in December, is known.
The move by the FOS, the umbrella group made up of regulatory complaints-handling bodies such as Imro, Opra and the PIA, has implemented the decision in order to put a stop to complaints handling costs spiraling.
The 400 complaints by policyholders already logged by the FOS has resulted in unrefundable charges of £200,000 to the Equitable. This is because there is a £500 per case charge made at inception. With over 600,000 policyholders' fates in the balance the potential number of new complaints could have seen that figure rise still further. The FOS has decided that it would be unethical to continue accepting complaints while a deal could still be achieved as the mounting costs would only worsen the position of the with profits fund.
Our weekly heads-up for advisers
'Nothing can prevent scammers developing workarounds'
Stalwart Scottish Mortgage takes third place
Consistency and compliance vs. slower reaction time
Search for replacement to begin imminently