Adviser faces Ombudsman nightmare in 'highly significant' case

Advisers warned to factor in third-party communication delays after six-figure FOS case

Isabel Baxter
clock • 5 min read

An advice firm has faced an expensive “nightmare” FOS experience after a letter of advice slip up was exacerbated by communication mishaps with a third-party provider

In what has been hailed as a "highly significant ruling" for advisers, the Financial Ombudsman Service (FOS) has squarely placed the responsibility on firms to ensure they build in processes to deal with potential communication issues with third-party providers. Last December, Merseyside-based Tailored Financial Planning (TFP) found itself on the hook for more than £116,000 plus investment losses after a lapse in communication regarding a letter confirming advice had been sought saw a client's pension transfer value plummet. Adding to the business' woes and bill, its professional inde...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Companies

Fairstone acquires Belfast advice firm

Fairstone acquires Belfast advice firm

Consolidator snaps up Ferguson Hill Asset Management

Isabel Baxter
clock 19 August 2026 • 2 min read
Canaccord Wealth acquires EFG's wealth business

Canaccord Wealth acquires EFG's wealth business

Snaps up £3.1bn AUM EFG Harris Allday

Isabel Baxter
clock 19 August 2026 • 2 min read
Octopus defends £3bn IHT scheme as scrutiny intensifies over lending disclosure

Octopus defends £3bn IHT scheme as scrutiny intensifies over lending disclosure

Criticism of transparency on Fern Trading lending activities

Isabel Baxter
clock 18 August 2026 • 4 min read