AIFA has reiterated its call for firms who use the Financial Ombudsman Service (FOS) the most to shoulder the bulk of the costs.
This would mean costs to IFAs would be cut dramatically as the FOS Annual Review for 2007/8, published yesterday, showed complaints against advisers had dropped by two thirds to only 4% of the total.
Chris Cummings, director general of AIFA, says: "The Annual Review substantiates AIFA's view that the vast majority of complaints brought to FOS are related to large financial institutions, and only a small proportion of complaints are generated by IFA firms.
"AIFA has been very vocal in its views over the general levy and case fees charged to firms. We firmly believe that those who are the biggest users of FOS should pay the lion's share of the costs.”
He says AIFA is fighting for 10 free cases to be awarded to all firms. On this basis the vast majority of IFAs would not be subject to the £400 case fee which is “a considerable burden to our members who in most cases see the complaint rejected”.
The trade body is also calling for all those that bring vexatious complaints to the FOS to be charged.
The FOS Annual Review revealed complaints had increased by 30% in total over the year largely due to a hike in PPI and bank charging disputes. However, the number of mortgage endowment complaints, which impacted significantly on IFA firms, fell by 70%.IFAonline
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