The FOS found in favour of Mr and Mrs Smith, who took out an endowment loan from Friends Provident. Despite exceeding the three-year time-bar for making a complaint, the rulings found in favour of the Smiths, leading to claims that the regulator will have to revise its three-year time-bar ruling.
The case focused on the Smiths’ disabilities, with the Ombudsman admitting this made it likely that they were too confused to make an accurate decision.
However, it has been claimed that the decision could lead to more successful endowment complaints.
Responding to the decision, a spokesperson at Friends Provident, said: “Friends Provident accepts the decision made by the FOS that the case of Mr and Mrs Smith is within its jurisdiction and that the complaint should be treated as ‘within time’. The FOS has determined the case is unique and falls within its definition of exceptional circumstances.
“Friends Provident is now investigating whether Mr and Mrs Smith’s endowment policy was mis-sold.”
A broker, who wished to remain anonymous, said: “I don’t think the FSA will change its time-barring rules. As a result of this case I can see more people looking at the possibility of submitting an endowment complaint to the FOS, but in most cases I think they will fail.”
A spokesperson at the FSA, said its time-bar rulings would remain, with the FOS able to look at the unique circumstances of each individual case.
