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Lakey warns of consumer power after N&P ruling
25 August 2010
Adviser Alliance(AA)has bemoaned the rise of consumer power in light of the first successful Keydata claim and says advisers should not “carry the can” for company failings. Last week, Norwich and Peterborough (N&P) was ordered to pay £28,000 to an elderly couple caught up in the Keydata collapse. But Adviser Alliance founder Lakey (pictured) says the ruling demonstrates how the scales of justice have been tipped in favour of consumers who should take more responsibility for their actions. "I have sympathy with N&P - you cannot say any adviser should carry the can for a company going bust," he says. He adds the investment was not necessarily bad from the outset and plans which might have been "on course went off course". According to Lakey, regulatory authorities now need to accept the consumer has a fundamental responsibility to understand their investments. He adds the industry has entered a new "consumer age" where it is far easier to make complaints. "The FOS must ensure they work under the rules of the land," he adds. "It is far easier for consumers to make complaints now but the consumer is not always right." The Adviser Alliance director also says the lack of an independent appeals process for ombudsman rulings further exacerbates the unfairness of the system. Published by IFAOnline
