HC Deb 17 July 2002 vol 389 cc335-6W
Mr. Weir

To ask the Chancellor of the Exchequer how many complaints of mis-selling of(a) endowment policies and (b) other financial products by (i) tied agencies and (ii) independent financial advisers have been made to the Financial Services Authority in each of the last five years. [703701

Ruth Kelly

The Financial Services Authority, as regulator, makes rules for IFAs and for tied agents. These include rules designed to prevent mis-selling and rules which require regulated firms to follow specified complaints procedures. Where firms are unable to resolve complaints themselves, FSA rules require them to allow complainants to pursue their complaints with the Financial Ombudsman Service and to comply promptly with an ombudsman's decision.

The FOS has provided the following figures for complaints handled either by itself or by its predecessor bodies.

Mortgage Endowment Complaints
IFAs Percentage Tied Agents Percentage Total
2001–02 2,312 15.84 12,283 84.16 14,595
2000–01 1 1 1 1 9,067
1999–2000 1 1 1 1 3,135
1998–99 1 1 1 1 2,856
1997–98 n/a n/a 2,751

1See table 3.

Other investment related financial products (personal pension plans, whole of life/non mortgage-linked endowments and other `packaged' investment products)
IFAs Percentage Tied agents Percentage Total
2001–02 1,952 15.76 10.434 84.24 12,386
2000–01 1 1 8,019
1999–2000 1 1 6,112
1998–99 1 1 5,642
1997–98 n/a n/a 4,042

1 See table 3.

Table 3. Figures for the percentage split between IFAs and tied agents across the range of investment related complaints are as follows1
IFAs (percentage) Tied agents (percentage)
2001–02 15.8 84.2
2000–01 13.9 86.1
1999–2000 14.9 85.1
1998–99 15.5 84.5

1 Breakdown figures are not available for the separate categories of investment complaints.

Back to