Guidance published by the Financial Ombudsman Service suggests compensation claims against the use of market value adjustments are only being awarded in cases where bad advice led with-profits investors to lose valuable income.
Latest edition of the FOS Ombudsman News suggests the ombudsman service has received several complaints from clients about the application of MVAs on their with-profits policies. Much of the evidence presented indicates consumers do not understand how the MVA works or were never aware they could be applied to policies to stop policyholders withdrawing money from the with-profits funds. In order to assess whether the client has been missold, the FOS says it is “looking to see whether the firm’s policy documents stated clearly that MVAs might be applied and explained the effect they cou...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
