Skip to main content
Personal Finance Professional – setting standards and guiding the profession - return to the homepage Personal Finance Professional logo
  • Search
  • Visit Personal Finance Professional on Instagram
  • Personal Finance Professional on Twitter
  • Visit @PersonalFinanceSociety on Facebook
Visit the website of the Chartered Insurance Institute Logo of the Chartered Insurance Institute

Main navigation

  • Home
  • News
  • News analysis
  • Features
  • Study room
  • Opinion
  • PFS Radio
  • Digital magazine
Quick links:
  • Home
  • Personal Finance Professional Issues
  • SPRING 2020
News

PFS uncovers evidence of poor CMC practice

Share on
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print
Open-access content Tuesday 17th March 2020 — updated 1.14pm, Friday 27th November 2020
web_p8-9_complaint_iStock-477141508.png

The PFS has received 40 complaints about the conduct of claims management companies (CMCs) in less than a week.

Evidence has been uncovered of CMCs issuing blanket calls for cash or escalating the complaint to the Financial Ombudsman Service (FOS) despite a financial adviser having evidence it is without foundation.

One adviser had evidence of a CMC issuing blanket complaints on annuity sales on behalf of clients without bothering to check whether any of what they were alleging even applied in the client’s case.

The CMC alleged that a client was not given the open market option of a joint life annuity or guarantee period, when the client actually purchased a joint life annuity with a 10-year guarantee period via the open market option.

The adviser, who wished to remain anonymous, said: “The claims management companies should be required to provide evidence of what they allege, as they waste so much time without any responsibility for their allegations.”

Another financial adviser was able to show the CMC how their client was financially better off because of their recommendation.

Despite this evidence, the CMC still referred the complaint onto the FOS, which concluded the advice 
was suitable.

In January, the PFS announced it was collecting evidence of poor practice among CMCs that will be passed to the Financial Conduct Authority.

Image credit | iStock
Alt
This article appeared in our SPRING 2020 issue of Personal Finance Professional .
Click here to view this issue

You may also be interested in...

web_p8-9_data-protection_shutterstock_619615334.png

PFS reacts to data reforms

In response to the Financial Conduct Authority and Bank of England announcing proposals for data reforms across the UK financial sector, the PFS has warned data alone will not prevent future consumer detriment.
Tuesday 17th March 2020
Open-access content
web_p8-9_pension-fund_iStock-844432160.png

PI problems prompt 30 advice firms to exit transfer market

More than 30 financial advice firms have turned their backs on offering pension transfer advice in the space of just three months, due to problems obtaining affordable professional indemnity (PI) cover, according to the PFS.
Tuesday 17th March 2020
Open-access content
web_p8-9_Forces-MoneyPlan-CMYK.png

PFS programme becomes affiliate member of Cobseo

In late 2019, the PFS’s Forces MoneyPlan initiative was granted affiliate membership of the Confederation of Forces Charities (Cobseo).
Tuesday 17th March 2020
Open-access content
web_p6-7_looking-at-computer_iStock-869437538.png

PFS mentoring scheme attracts 1,000 participants

Connect, the PFS’s e-mentoring programme, has attracted more than 1,000 mentors and mentees since its launch in the summer.
Tuesday 17th March 2020
Open-access content
web_p6-7_data_iStock-638855738.png

Brexit expected to boost FTSE 100 share prices

Brexit could boost FTSE 100 share prices, according to 42.4% of 170 financial advisers who took part in a PFS poll in January.
Tuesday 17th March 2020
Open-access content
web_p6-7_PFS15yr_NoStrapline_Red_-CMYK-.png

PFS celebrates 15 years and plans for the future

2020 marks 15 years since the launch of the PFS, prompting the professional body to reflect on past and future developments.
Tuesday 17th March 2020
Open-access content

Latest from News

fx

PFS Publishes Consumer duty good practice guide for financial advisers

In support of the Financial Conduct Authority’s (FCA) flagship regulatory reform, the Consumer Duty, the PFS has created a good practice guide for personal finance firms.
Friday 17th February 2023
Open-access content
zx

PFS responds to future disclosure framework discussion

The Financial Conduct Authority (FCA) has published its Discussion Paper on a Future Disclosure Framework.
Friday 17th February 2023
Open-access content
td

PFS hosts first graduation ceremony since 2019

The PFS once again welcomed members to a graduation ceremony for those qualifying as Chartered financial planners, Associates or Fellows of the PFS in the period 1 July 2019 to 30 June 2022.
Friday 17th February 2023
Open-access content

Latest from SPRING 2020

web_p46_study_iStock-1044229718_fadeout.png

Skills to pay the bills

How the My Personal Finance Skills programme is delivering free financial education to students
Tuesday 17th March 2020
Open-access content
web_p40_protection_IKON_00022595_edit.png

Protecting Corporate Chartered status

Enhancing the integrity of Corporate Chartered status
Tuesday 17th March 2020
Open-access content
web_p38-39_bridge_iStock-538277777.png

Bridging the gap

Purpose of bridging loans in the UK property market
Tuesday 17th March 2020
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

BECOME A MEMBER

BECOME A MEMBER

SUBSCRIBE TO PRINT

SUBSCRIBE TO PRINT
PFP
​
FOLLOW US
Twitter
LinkedIn
Youtube
CONTACT US
Tel: +44 (0) 20 7880 6200
Email
Advertise with us
​

About the PFS

About us
Membership
Qualifications
Events

PFP magazine

Digital magazine
Podcasts
Blog
News

General Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Write for PFP Magazine
Want to receive PFP Magazine
Not a member but interested in knowing more? Click here.

© 2023 • PFP Magazine is published by Redactive Media Group. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ