Following the example of high profile financial adviser redress schemes by St James’s Place and Quilter Plc, Ascot Lloyd, another leading UK financial advice firm, has reserved £17 million to address client redress following an internal review of its ongoing advice services.
Firms doing the right thing
This is not a scandal like Car Finance discretionary commission arrangements, where firms have actively incentivised resellers to charge clients more, disadvantaging consumers in order to drive up their profits.
These are failure of control within the firm to ensure that their financial advisers are delivering the services which their clients (often friends and family) have been paying for.
There has been not legal challenge, no judicial reviews or hearings through the supreme courts. Firms like Ascot Lloyd have admitted the mistake, committed to making changes and put cash aside to ensure clients who entitled to financial redress get the money they deserve.
What can you do to see if you have been affected by financial adviser fees?
The first step is to enquire with the firm and ask for evidence of your annual reviews.
Is there anything you should be mindful of?
Churn
If you were advised to move pensions or investments from an existing scheme or schemes (known in the industry as churn), it pays to find out whether you were charged for doing so and how your overall performance may have suffered.
Tax Allowances not being used
If you have not been receiving regular reviews from your financial adviser and have failed to utilise your ISA or Pension Allowances.
Don’t settle before knowing the full value
Firms are often fast to offer full and final settlement purely for adviser fees which could lead to missing larger redress payments which may be due.
Seeking Redress for Affected Clients
If you think you may have been affected by inadequate ongoing advice services, but you aren’t comfortable bringing a complaint against the firm yourself, we offer expert support. Book a free call with our claim experts to explore your options and seek assistance in securing redress from financial advisers.
