Novia warns advisers over claims firm menace

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Novia has warned its users that basic errors like failing to use a client's full ISA allowance could lead to legal action from increasingly aggressive claims management companies (CMCs).

In guidance to advisers, sales director Paul Boston (pictured) warned about a number of "litigious pressure points" spotted by the platform. He also cited data released by the Financial Conduct Authority (FCA) last week, showing steep rises in complaints against prominent advisory firms. "Sesame has disclosed an 87% increase in claims over the last six months which it put down to claims management firms," he said. "This is only likely to become ever more prevalent going forward. "It is vital that we all have one eye on mitigating unnecessary business risk, which is one of the four ...

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