From the Editor: Why the FOS can expect a fuller postbag from now on

The Labour government was rightly derided for many things, but one event that happened under its watch should be applauded: the introduction of the Freedom of Information Act.

The Act was designed to be far-reaching. To quote the government, it gives people “the right to ask any public body for all the information they have on any subject”.

And, since yesterday (2 Nov), you have been able to submit requests to the Financial Ombudsman Service (FOS) after it was brought under the scope of the legislation.

There are limits to what the FOS is obliged to tell you, but I think it can expect a few extra letters from now on.

Some advisers do not trust the FOS.

They believe its decisions are unfairly weighted in favour of the individual who has complained about them.

Perhaps this has been exacerbated by the body’s omission – until now – from the Act.

The Ombudsman will always struggle to shake off the perception it is biased toward the complainant.

Making judgements retrospectively as it does and with the benefit of hindsight, a poor customer outcome can appear to be because of bad advice, not in spite of it.

But advisers say they have several examples which suggest the body is highly prejudiced. And the mistrust runs deep.

A poll of some 300 IFAs on their attitudes to the FOS earlier this year found 82% felt its adjudications were unfair.

The FOS claims it is an “appropriately open and transparent organisation”. Now you have a chance to put that to the test, and there are a handful of you ready to do just that (see pages 14 and 15).

Elsewhere in this issue, Professional Adviser brings you another article fully accredited by the Institute of Financial Planning and the Chartered Insurance Institute as suitable for knowledge gap-fill ahead of the RDR.

After articles on ethics and investment theories, we bring you a new piece on asset classes written by Geoff Mills, director at Rayner Spencer Mills.

The article will direct you to an online page where you can take a test and, should you pass, collect a CPD certificate for your records.

We also report on firms’ frustrations with the FSA over its definition – or lack thereof – of a ‘retail investment product’ (pages 8 and 9), take a closer look at FATCA (page 25) and weigh up the pros and cons of adopting a passive investment strategy (page 42).

Enjoy.

Scott Sinclair

Editor, Professional Adviser and IFAonline.co.uk