OAC Focus - Q4/09
The Actuarial Profession - Life Convention 2009 Edition Topics include: Solvency II; Impact of latest regulatory changes on the IFA distribution channel; Future direction of regulation; Risk and capital management; Complaint management; Retail Distribution Review; Technical Actuarial Standard for Modelling; Technical Actuarial Standard for Insurance Business; The way ahead for actuarial contractors.
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When FOS decides that an investor needs to be compensated it also directs how the compensation should be calculated but does not calculate the compensation itself.
Sometimes the calculation directive is unclear; sometimes it assumes that information can be obtained when in practice it cannot and occasionally it is a clearly inappropriate basis.
This gives a problem as once accepted a final decision cannot be overturned.
Understandably the regulated adviser will usually start by arguing that there is nothing wrong and no compensation should be due but fails to look closely at how it is directed compensation should be calculated. If either the compensator or the investor thinks that the compensation method is inappropriate OAC can advise on these matters if asked prior to the date a decision has to be accepted.
If FOS are told that OAC are advising they will usually grant an extension to the deadline for reply. OAC is also able to calculate the compensation as per FOS decisions and will if necessary and requested by our client, liaise with FOS where the direction is unclear or information is unobtainable.
Contact us to discuss how OAC can help you with understanding the appropriateness of the FOS desicion.