Fee-based IFA will lose money under FOS rules

Amy King, IFA at Denholm & Brown, has expressed concern that if the client in question carries out his threat to take the firm to the FOS, the IFA will be out of pocket irrespective of whether or not it wins the case. King says the firm will lose even if it pursues the matter as FOS rules stipulate IFAs must pay a case fee of £360 regardless of the outcome. King argues the system is “just another government double standard” after a new client refused to pay a £200 fee for the financial plan the firm prepared for him. She says the client sent an “abusive and threatening” letter to the...