Stop FOS / CMC's ignoring FCA Complaint Timelines

Aim

FOS/CMC's are abusing their position by not following FCA Complaint Handling Rules to the detriment of current & ex Financial Advisers in UK

I’m reaching out today to share a deeply personal and stressful situation that Kevin and I are currently facing, one that no one should have to endure after working so hard their entire lives.

As we both find ourselves on the wrong side of 60, we’ve spent over 40 years building our businesses, raising our families, and dreaming of a peaceful retirement. After my own battle with cancer and now being in remission, we were both finally starting to look forward to the rewards of our hard work and the time we so desperately deserve.

But life has thrown us a cruel curveball, with the very real prospect of losing our home of 40 years.

Through a series of unjust actions by both a Claims Management Company (CMC) and the Financial Ombudsman Service (FOS) we’re now facing the very real possibility of losing everything we’ve worked for. Despite their clear responsibility to follow Financial Conduct Authority (FCA) rules, these institutions have abused the timeline rules in place, putting all our years of sacrifice and effort at risk.

This situation has been devastating—not just financially, but emotionally. The stress, uncertainty, and frustration have been overwhelming, and it feels like we’re up against a system that doesn’t care about those who’ve given everything for their businesses and families.

We’re asking for your help.

With your support, we hope to be able to secure the resources needed to navigate this crisis, protect what we’ve worked so hard to build, and hopefully rebuild our future. Every contribution—no matter how small—will make a difference in helping us face this uphill battle.

WHERE WE WERE: In 1995, myself and Kevin Wetherick set up an Inedependent Financial Adviser (IFA) business as appointed representatives (AR's) of the M&E Network. We successfully provided independent financial advice to both the public and SME's for many years. I personally left the industry in 2010 due to dissatisfaction with ever increasing and bureaucratic regulation, to the detriment of both consumers and advisers. In all the time we worked together as IFA's, we had not one upheld complaint.

REGULATION: The regulators were known under several different guises during our time as IFA's, The PIA, FSA and since 2013 The FCA. The FCA are a government appointed body that "regulate financial services firms in the UK, setting standards for firms to meet and holding them to account if they don't. Our work helps underpin the UK’s reputation as a leading global financial centre – one where consumers are well served, and firms can operate and innovate with clarity and certainty" Bold aims, looking out for consumers and businesses equally.

The FCA set all of the rules of conduct that regulate financial services firms in the UK, including Banks, Building Societies, Investment Firms, Insurance Companies and Financial Advisers.

Occasionally, errors occur, and some firms provide advice that primarily benefits themselves instead of their customers; these instances should be held to account. To address such situations, the FOS was established by the government in 2001 to resolve complaints between financial businesses and their customers to protect both consumers when they receive poor advice, and businesses from speculative complaints without merit. The FOS is expected to follow the complaint handling rules set by the regulator, the FCA, including time limits. According to its website, complaints must generally be made within six years of the event or within three years of becoming aware of grounds for complaint. However, there are cases where these limits have not been strictly observed.

An example is referenced here on the FT Adviser website: "Tenet tells adviser to pay £155k for advice given more than 20 years ago"

WHAT HAPPENED ? In 1997 I provided pension advice to a consumer. In 2008, the consumer purchased an annuity with his pension fund. In 2022, the consumer complained through a CMC about the advice received. It's clear that the complaint was made 'out of time', as the primary 6 year time limit expired in 2003, and the secondary time limit of 3 years expired in 2011. 

I was not contacted by Tenet at any time during their investigations for my input or recollections of the case and advice provided in 1997. Tenet rejected the complaint in 2022 as the advice in their opinion was sound. The CMC took the complaint to the FOS in 2022, and astoundingly although the complaint was 25 years after the advice was provided, clearly outside of the time limits set by the FCA that the FOS claim to follow, they upheld the complaint, resulting in a £155,000 redress payment for the consumer, less the CMC cut of up to 30% ! Bizarrely, after receiving the details of the complaint I spoke to the complainant, who told me he had no thought of complaining until he received a cold call letter / email / advert (he can't remember which) from a CMC, and after speaking to them, he was encouraged to "give it a go" to see what he could get !

WHY IS THIS IMPORTANT ? As a result of both the CMC and the FOS quite scandalous abuse of the timeline rules set by the FCA that they are both required to follow we stand to lose everything we have worked 40+ years for. A dangerous legal precedent could be set by the case's outcome, potentially affecting how Ombudsman services enforce timeline rules for various professions, including not only Financial Advisers in general, but Surveyors and Valuers, Mortgage Advisers etc, etc.

We are faced with funding a defence in a very expensive hearing in Court for Tenet to recover the payment from us that they made to the complainant, although the complaint was clearly beyond the time limits for the FOS to consider. Retirement seems a very long way away because of FOS negligence and ineptitude.

Having fought this case for nearly 2 years now, our planned retirement pots are virtually empty due to legal fees already paid: but we need to continue the fight to ensure justice prevails, not only for ourselves, but also for the benefit of any advisers falling foul of FOS and CMC abuse in the future. Far better to have our successful defence case set a precedent, than Tenet being successful and setting a wrong and worrying precedent that could be used against you way into your retirement. FOS and CMC processing of time barred complaints needs to be stopped ! 

WHAT ARE WE ASKING FOR ? We are asking for your support in the form of donations to continue the legal fight against Tenet. Contributions of any amount from advisers or members of the public to support this cause are welcomed, even £10 could make a difference. If you pay via a business account, keep the payment receipt as any donation may be tax deductible.

Please help us in our defence, and to stop market abuse by the FOS and CMC's.

Funding method

Keep what you raise – this project will receive all pledges made