Brokers have been under the FOS’s ‘compulsory jurisdiction’ since becoming regulated in 2004. Since then, the FOS has seen a steady stream of cases involving brokers, largely on advice, charges and administrative failings.
The FOS said most cases have been resolved informally, with most brokers happy to discuss cases with case-handling staff. However, the FOS said smaller firms can need more advice, especially if they have no previous experience in dealing with them.
FOS chief ombudsman, Walter Merricks, said: “From our experience, it would appear some smaller firms have found it difficult to present their arguments with the necessary degree of professional detachment.”
To combat this, the FOS wants brokers to remember it is an impartial body and there is no need to be defensive in answering its questions. FOS has said it tries to keep brokers aware of the different stages in its process.
If a case should come against an intermediary, FOS has recommended that those involved should provide all the information the adjudicator has asked for, to never ignore a question and to include any other relevant information and explain why.
Stuart Wilson, managing director of Equity Release Advisory Services said: “My overriding observation is that advisers are excluded from the philosophy of being innocent until proven guilty. Advisers have to remember that the ambulance chasers will come and they will have to defend the advice they give today and tomorrow, which means keeping good, clear records. It is rare for people to give fraudulent advice, but you can’t prove what advice you’ve given in hindsight without good record-keeping.”
