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...

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Isabel Baxter
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Isabel Baxter

News editor at Professional Adviser

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