It feels as if the advice sector and the the Sipp sector is to be dogged by problems till kingdom come. Alongside issues with transfers, unregulated collective investment schemes continue to arrive before the FOS. It looks like some of the judgments now have legal backing and some might argue finally – properly FCA attention.
The Berkeley Burke Sipp loses a bid to judicially review a FOS ruling which awarded compensation to an investor due its failure to do due diligence on an overseas investment in Cambodian-based biofuels. The Sipp says it will appeal.
However what has also rocked the market is the fact that the FCA has now written a letter to Sipp chief executives reminding them they must inform them if compensation claims potentially undermine their finances and that investors, including those seeking compensation, need to be looked after in the event of a sale.
The FOS has ordered Intrinsic to compensate two investors over advice to invest in two overseas sustainable energy schemes by one its representative firms.
These UCIS cases still seem to be causing problems. There is always a time lag of course but the question remains are such recommendations still happening and for IFAs who don’t go near this kind of scheme, what will the compensation bill be?
Money Box presenter Paul Lewis says that banks must do more to prevent scams.
Nutmeg adds telephone-based financial advice to its proposition – the initial conversation is free – the price for subsequent recommendations is £350.
The Budget has confirmed that the lifetime allowance has nudged up to £1,055,000 and of course it didn’t cut back the annual allowance as widely predicted.
Chancellor Philip Hammond brings forward planned rises in the personal and higher rate tax allowances.
Contractor UK considers - with some anguish - the extension of the IR35 crackdown on contractors to the private sector though big employers won’t have to check things until 2020.
Advisers knew this bad news was coming but Accentric users face two weeks of disruption.
