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 ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes