Rows have surfaced over endowment compensation, says FOS

Guidance set out in the February/March edition of FOS’ Ombudsman news indicates adviser firms are struggling to ascertain and explain how compensation should be paid in cases where clients have switched to repayment mortgages but kept their endowment policies going. According to the FOS, there are a "small but increasing number of disputes where, because the customer’s circumstances are far from straightforward, the [IFA] firm has been unsure exactly how to work out the correct amount of compensation". A key question to consider when calculating the compensation is why>the client has ...