Over half of respondents to an IFAonline industry straw poll believe claiming for compensation is the client's responsibility and advisers should not have to invite them to claim.
The results follow comments from law firm Reynolds Porter Chamberlain (RPC), which said the treating customers fairly (TCF) principle requires firms to identify all customers who may have been mis-sold or received poor service and invite them to claim for compensation.
Of the 108 IFAonline readers who responded to the straw poll - “Should IFAs have to invite clients to claim for compensation?” – 56 (52%) disagreed with RPC and said it was the client’s responsibility to make a claim.
A further 31 respondents (29%) said inviting clients to claim would invalidate professional indemnity (PI) cover, following comments from RPC that insurers are unlikely to provide cover if firms pay compensation where no strict legal liability exists.
Just 20 respondents (19%) agreed inviting clients to claim was treating customers fairly and only one person thought it would prevent enforcement action from the Financial Services Authority (FSA).
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7034 2680 or email [email protected].IFAonline
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