The benefits of using an IFA rather than  a Bank adviser were perfectly illustrated this week, when the Financial Ombudsman Service released its data regarding complaints it had received in the last 12 months.

Without doubt the biggest offender leading to complaints were the Banks with 61% of the total complaints received. Complaints received relating to advice given by IFAs was down 1/3 to just 2%.

No industry is perfect and we would love these figures to be even lower but the reality is, it clearly shows that clients generally get far better advice and service from  IFAs,  as they are much less likely to complain.

It is further worth noting that of those complaints, less than 1/3 were upheld by the Ombudsman indicating that the majority of complaints against IFAS were unjust in any event.

Other offenders on the list were the sellers of general insurance. In their case over 90% of complaints against the sellers were upheld. Many of these complaints related to the sale of payment protection insurance.

Clients, I say to you now, it is vital you seriously consider whether this insurance is appropriate for you. Few insurers will pay out if you are self-employed and often the sellers of such insurance will only have one product to sell you and will badger you to take that whether or not it is appropriate.

At Moffatt Financial Planning Ltd, we have access to a range of insurers providing such cover, and we will not hesitate to advise against such cover if we feel it is inappropriate for you personally.

Moral of the story….. don’t get financial advice from your Bank and consider an IFA regardless of which financial product you are considering taking out. This way you can be sure the product has been properly researched and the best on the market for your own needs.

Better still get advice from Chartered Financial Planners, the most qualified of advisers…….. did I mention John and I are Chartered?

Many of you are aware I have been a longstanding critic of Bank Financial Advisers. Not only do they typically rip you off when you make any initial investment with them…. typically charging you way over the odds, but they also offer limited investment choice and no review service which is crucial to any long term investment.

Now it seems, the banks have formulated their own view on how their clients are classified. Remember, this could be you and I.

Barclays Bank, it has emerged, refer to their clients as “Conquests”!!!

The sort of term you might associate used by an immature teenage boy who has just had his wicked way with a girl in his class, behind the bike sheds.

The source goes on to say that the Barclays staff are under intense pressure to sell stocks and shares ISAs, earning £49 for every £1,000, as opposed to just 18p if a client’s money goes into cash. He also accepts that the structured products the bank offers its customers are “rubbish” .

This philosophy goes against all the principles associated with the advice we offer as Chartered Financial Planners. We are happy to recommend whichever investment suits our clients based on their own attitude to risk. Our advisers are salaried and do not have any “sales targets”. We give the appropriate advice for each and everyone of our clients.

This information was leaked by Barclays staff so can be taken as read. It is a clear illustration that clients should be very careful if considering taking advice from a bank financial adviser.

Without doubt the best solution is to use an Independent Financial Adviser, preferably Chartered like John and I, where you will receive the correct advice and an ongoing service to ensure your investments offer the right solution for you both now and in future.

The markets responded today as I suggested. A fall of over 2.6% today and more than 10% in the last week or two.

Of course the falls aren’t all about the election, with big concerns about the situation in Europe.

The pound has fallen sharply in currency terms due to the election situation. The markets are very concerned about the desirability of UK Govt Bonds and hence the ability of the UK Govt to repay its debt and end up like Greece, Portugal and Spain. A hung parliament may mean the inability of an acting Government to impose new legislation to ensure the UK recovers quickly from the recession.

These are very real concerns and should not be underestimated. However if the Tories can forge a coalition with the Liberals, quickly, these concerns may be short lived.

One big problem is that Gordon came to power by his own choice and not by choice of either his party, his party’s supporters or the public. He has bullied off two attempts to remove him by his own party, so he is unlikely to go quietly.

In this case it is vital the Country comes first and not Gordon’s personal desires so it is incredibly important for Cameron and Clegg to do a deal quickly giving Gordon no choice but to pack his bags and move out of No.10.

The next couple of days are crucial so fingers crossed as our investments and pensions are paying the price yet again for Labour’s failings.

Much speculation exists about the impact of a hung parliament on investments.

As commented in my previous blog all the Fund Managers are united for once in that they believe a Hung Parliament will have a negative impact on the markets. Concerns about introducing the necessary legislation to ensure recovery continues is the biggest concern.

They are united therefore in the view that a clear majority for one party is the best way forward. The polls indicate a majority for the Tories with no real chance of a Liberal or Labour win. We can ignore what the politicians tell us as we know they talk rubbish.

My view is simple. Our pensions and Investments have suffered enough over the last few years. We should put ourselves first for a change and vote to protect our savings and investments and protect our future. We should vote for a clear majority this week.

If you are not a Tory and I confess for my sins, I am, then may I recommend your vote for them anyway? If you are about to retire or draw on any of our investments etc, then it is a particularly important vote!

Remember they are going to tax us anyway, so you might as well have more before they tax you, as you will certainly have less when they have.

Many clients are no doubt becoming increasingly concerned about press speculation that Prudential is to sell its UK business operations.

To ease concerns I asked for feedback from Prudential and confirm below Rob Devey, Pru Chief Exec’s, comments:

“Let me address the press speculation head on.  You must all be getting very bored of it by now (I know I certainly am) but it doesn’t stop it from destabilising our friends and family, our customers and indeed us all.  But let’s remember that it is simply speculation and nothing has changed.  As I said very clearly at the roadshows, we don’t have plans to sell the UK business.  It’s a fantastic asset for the Group – so fantastic, in fact, that I’m sure there are plenty of people who’d like to buy it, and yes, people have asked in the past and no doubt will in the future.  Sadly, this is one of the things we have to bear with being the UK’s most profitable insurer, with the best brand, the best people and unrivalled skills in the areas that we focus on.

We said at the time that we launched the AIA deal on 1st March, we knew that there would be a lot of media noise, particularly in the run-up to the launch of the rights issue, and that’s exactly what we’re seeing.  All I can ask, as ever, is for us to keep our heads down and keep working away for our customers and our intermediary and other distribution partners.  Long term performance will always shine through.”

Hope this eases any concerns you may have. I believe Prudential still offers great products for clients and would suggest limited notice be taken of press speculation.