How Does It Work?

In order to obtain redress for losses suffered via mis-sold pensions, shares and other financial products, we must first determine who is liable for the recovery. This could be the organisation that originally recommended the financial product in question, the organisation that “signed it off”, or it could be an organisation’s professional indemnity insurers.

Identifying where the liability lies is crucial in determining which route to redress is most appropriate, and therefore, which will be paying the compensation owed to you, as we discuss below:

Financial Services Compensation Scheme
The Financial Services Compensation Scheme is the ‘compensation scheme of last resort’. What this means, is that the Financial Services Compensation Scheme (FSCS) will only consider (and therefore compensate) cases where the person or organisation being claimed against is unable, or likely to be unable to meet the costs of the claim. This is usually because the individual or organisation in question has ceased trading, is in liquidation, bankruptcy etc. In order to proceed with recovery via the FSCS, you will need to know, or be able to demonstrate that those you are making a claim against fall under one of the above categories, as well as providing evidence and information pertaining to your claim. For example: an estimate of how much money was lost; the circumstances that led you to believe that you were mis-sold; any paperwork to support you claim; etc. A claim that is pursued via the FSCS can take approximately 6-7 months to complete, sometimes longer depending on the circumstances. Further information can be found on their website.
Financial Ombudsman
The Financial Ombudsman Service (FOS) acts as an independent intermediary between the parties involved in a dispute or complaint, where relating to the provision of financial services. In order for the FOS to consider a complaint, the individual or company being complained about must be trading, and you must be able to demonstrate that you have already complained to the individual or organisation in question, with no success. Complaints handled by the FOS can take up to 12-18 months to complete, depending on the circumstances. As with the FSCS, the FOS will ask for details and evidence to support your claim, as well as replies from the individual or organisation being complained about. More information about the FOS can be found on their website.