Financial advisers are expected to apply "ethical logic" when assessing a client's attitude to risk and cannot depend solely on a ‘fact find' assessment, according to a recent Financial Ombudsman Service case.
Details of a case highlighted in this month’s Ombudsman News reveals a mortgage endowment complaint made against an IFA was upheld against the firm because the firm had used just one piece of evidence to assess whether the product was suitable for the client. Moreover, this case suggests any complaint placed in front of the FOS will be assessed not just on paperwork presented but on the likely risk profile of the complainant, in the mind of any right-thinking person. In the case highlighted, the firm had advised the complainants - Mr & Mrs A - they had no grounds for complaint becaus...
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