FSAVC Mis-Selling
Discussion
Hi,
I need a little bit of advice.
I'm a teacher making pension provision through teachers' superannuation, as well as through FSAVC with Abbey Life.
I've been contributing £130pm to the Abbey thing, which has a fund value of £45K.
High charges are of course detrimental to growth.
I feel that this product was not right for me and that additional provision through the main scheme would have been a better course of action.
Are there grounds for some compensation here?
Should I keep going with the product or just stop contributing or transfer the fund (transfer value about £36K) to another provider?
Not sure what to do!!
Jazzer
I need a little bit of advice.
I'm a teacher making pension provision through teachers' superannuation, as well as through FSAVC with Abbey Life.
I've been contributing £130pm to the Abbey thing, which has a fund value of £45K.
High charges are of course detrimental to growth.
I feel that this product was not right for me and that additional provision through the main scheme would have been a better course of action.
Are there grounds for some compensation here?
Should I keep going with the product or just stop contributing or transfer the fund (transfer value about £36K) to another provider?
Not sure what to do!!
Jazzer
If you do pursue the mis-sold route you will have to demonstrate that at the time you decided to take up the FSAVC facility the deal was not right for you AND the advice that you received at that time was incorrect for your circumstances. If you took this out without any advice, you have nothing to complain about. Just because, since then, you are disappointed with the outcome is not, in itself, sufficient to pursue a the mis-sold route.
R.
R.
It was flogged to me by a commission-chasing Abbey Life salesman.
Apparently, returns would be excellent, way better than with the employer scheme.
No mention of better options for me, such as proceeding via an in-house AVC route, with much lower charges.
This brings my case into the realms of mis-selling.
My only concern is the time that has elapsed.
I'm not alone of course.....it really is a quite scandalous state of affairs.....at least Dick Turpin wore a mask!!
Apparently, returns would be excellent, way better than with the employer scheme.
No mention of better options for me, such as proceeding via an in-house AVC route, with much lower charges.
This brings my case into the realms of mis-selling.
My only concern is the time that has elapsed.
I'm not alone of course.....it really is a quite scandalous state of affairs.....at least Dick Turpin wore a mask!!
Who sold it and their method of remuneration is irrelevant. It's what advice they gave, or did not give, at the time of the "sale" that's relevant. Did they mislead you, or is it simply a matter of you being disappointed with the results?
There's no point in using the Finacial Ombudsman Service unless you have raised a formal complaint against Abbey Life and had their response. If you skip this first step there's no complaint to be investigated: you've got to make one first.
If you do go to the FOS it's likely that they will spot it's a pensions matter so they will pass it on to The Pensions Advisory Service to investigate because you're a member of the Teachers' Pension Scheme, and FOS always likes to pass complaints to other organisations if they can (FOS is overworked, under staffed)! If it turns out to be a simple sales matter then FOS may investigate a complaint but they are still likely to start by passing matters to TPAS first.
R.
There's no point in using the Finacial Ombudsman Service unless you have raised a formal complaint against Abbey Life and had their response. If you skip this first step there's no complaint to be investigated: you've got to make one first.
If you do go to the FOS it's likely that they will spot it's a pensions matter so they will pass it on to The Pensions Advisory Service to investigate because you're a member of the Teachers' Pension Scheme, and FOS always likes to pass complaints to other organisations if they can (FOS is overworked, under staffed)! If it turns out to be a simple sales matter then FOS may investigate a complaint but they are still likely to start by passing matters to TPAS first.
R.
Thanks for the info, much appreciated.
I was indeed misled, not having it pointed out that the in-house approach would have incurred much lower charges and been a better bet.
Comparison of performance figures show clearly just how much this has cost me.
This is the big issue with tied sales people, eh?
I was indeed misled, not having it pointed out that the in-house approach would have incurred much lower charges and been a better bet.
Comparison of performance figures show clearly just how much this has cost me.
This is the big issue with tied sales people, eh?
Jazzer,
You are still looking at this historically: you only know the in house option is a better better now because the FSAVC performance is lower. At the time you started FSAVCs you couldn't have known for sure which would turn out the better and you hoped it would be the FSAVCs. I wonder if your concerns would have arisen now if the FSAVCs had out performed the in house option? I suspect not. By itself, the poor comparative performance is not cause for a formal complaint.
The different charges and not being told about this is another matter. This may be the basis of a formal complaint.
It all comes down to what advice was given to you at the time, the comprehensiveness of information it was based on, and a view on the quality of that advice etc at the time it was given.
R.
You are still looking at this historically: you only know the in house option is a better better now because the FSAVC performance is lower. At the time you started FSAVCs you couldn't have known for sure which would turn out the better and you hoped it would be the FSAVCs. I wonder if your concerns would have arisen now if the FSAVCs had out performed the in house option? I suspect not. By itself, the poor comparative performance is not cause for a formal complaint.
The different charges and not being told about this is another matter. This may be the basis of a formal complaint.
It all comes down to what advice was given to you at the time, the comprehensiveness of information it was based on, and a view on the quality of that advice etc at the time it was given.
R.
Of course it would have mattered!
The thing is though: who in their right mind would choose an investment vehicle with much higher charges over a second, similar kind of vehicle?
I wouldn't, and neither would you.
This is precisely why the "consultant" didn't make me aware of the AVC option.
The simple fact is that the FSAVC has not performed as well as the AVC has over the period, with the significantly higher charges on the former going a long way to explain the shortfall.
This means that I've been mis-sold the FSAVC.
Now wish me luck, despite how much it might stick in your craw!
The thing is though: who in their right mind would choose an investment vehicle with much higher charges over a second, similar kind of vehicle?
I wouldn't, and neither would you.
This is precisely why the "consultant" didn't make me aware of the AVC option.
The simple fact is that the FSAVC has not performed as well as the AVC has over the period, with the significantly higher charges on the former going a long way to explain the shortfall.
This means that I've been mis-sold the FSAVC.
Now wish me luck, despite how much it might stick in your craw!
Jazzer said:
The thing is though: who in their right mind would choose an investment vehicle with much higher charges over a second, similar kind of vehicle?
I wouldn't, and neither would you.
Absolutely I would if the potential additional investment growth outweighed the additional charges.I wouldn't, and neither would you.
You are concentrating on one aspect of the comparison in hindsight.
Neverthless, put your complaint into Abbey Life and they will look at your records from the sale and let you know if the adviser complied with the FCA requirements applicable at that time.
The charges are so horrific that the fund would need to be incredible to make up the difference......it would never get there!
My point is that I was not given the relevant facts at the time, facts that the "consultant" must have
been aware of.
That's plain wrong.
The Ombudsman thinks I have a good case and were curious to know why my situation had not been subject to earlier re view.
I now await the response from Abbey Life.
Should I make it paid up or keep going or transfer elsewhere?
Still about 15 years before I hang up my boots!!
My point is that I was not given the relevant facts at the time, facts that the "consultant" must have
been aware of.
That's plain wrong.
The Ombudsman thinks I have a good case and were curious to know why my situation had not been subject to earlier re view.
I now await the response from Abbey Life.
Should I make it paid up or keep going or transfer elsewhere?
Still about 15 years before I hang up my boots!!
Get some professional advice and complain,stick with it and dont give up.My story may give you some encouragement. I`ve just gone through a long drawn out miss selling case about the outcome of my private pension with one of the big banks.This experience has amazed me and opened my eyes to what is going on with banks.They wont let on but I think they have to follow a procedure and guide lines with miss selling cases.
In my case,my financial adviser helped me draft a simple letter of complaint about a charge of £1K to one part of the pension and to my amasement a full blown miss selling case started.It dragged on for months,(they want you to give up)they send you piles of paper work about The financial Ombudsman(to get rid of you)I got a ten page questionnaire about my financial affairs 20 years ago(trying to trip you up)then more questions about my answers (its all tactics because they have my records and know the answers).
Any way after six months I finally got the result.They admitted that "The product sold to me was inappropriate" and awarded me a huge compensation payout,to me it was like winning the lottery.
All this made me realise that there must be thousands of people out there who are totally unaware that they were ripped off by banks and are owed millions.
In my case,my financial adviser helped me draft a simple letter of complaint about a charge of £1K to one part of the pension and to my amasement a full blown miss selling case started.It dragged on for months,(they want you to give up)they send you piles of paper work about The financial Ombudsman(to get rid of you)I got a ten page questionnaire about my financial affairs 20 years ago(trying to trip you up)then more questions about my answers (its all tactics because they have my records and know the answers).
Any way after six months I finally got the result.They admitted that "The product sold to me was inappropriate" and awarded me a huge compensation payout,to me it was like winning the lottery.
All this made me realise that there must be thousands of people out there who are totally unaware that they were ripped off by banks and are owed millions.
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