The Treasury Select Committee write:

We have heard from people who, when faced with a prospective shortfall, have complained to the endowment provider. The provider has, quite properly, indicated that in the particular case the complaint lies with the IFA who sold the policy.

On making a complaint to the Ombudsman about the adviser, the policyholder has been informed that where the policy was taken out before 1988 the Ombudsman has no role.

Additionally, if the adviser has gone out of business, and the policyholder has quite properly tried to claim from the Financial Services Compensation Scheme, the policyholder will again have been informed that where the policy was taken out before 1988 it is not covered by the Scheme.

Consumers may need more help in establishing fair redress in some cases, with the main problem areas relating to policies sold via IFAs prior to 1988.

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A disappointingly feeble conclusion, which will doubtless leave these people in regulatory no man's land.

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