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Topics: Alan Lakey| FSA
Adviser Alliance is steaming ahead with plans to launch a judicial review into the lack of a long-stop after an IFA lost a case relating to a 20-year claim.
Founder of the lobby group Alan Lakey (pictured) says now an arguable case has been found on which to base the review, Adviser Alliance will "do a Gareth Fatchett" and raise funds from the industry to finance the court case.
"We are now at the point where we are talking to QCs and will pay money to get the case looked at in depth and get after-the-event insurance," he says.
Although Lakey could not divulge details of the case, he said it involves a practising IFA and relates to a 20-year old claim.
"It is a case that if the long-stop was recognised would be time-barred," he says. "He has a solid defence of a case the FOS has ignored and put its own interpretation of the law on."
The development means Adviser Alliance's ultimate goal of reintroducing a 15-year long-stop edges closer. A long-stop - meaning the matter complained about must have occurred within the last 15 years or the complaint is void - was introduced in 1980. Adviser Alliance says the FSA removed it, without consultation, in 2001.
Lakey reveals Adviser Alliance will now pay for a QC's opinion on the case and, should it suggest the review has a good chance of success, will negotiate after-the-event insurance before going to the industry to accumulate the necessary funds.
"We will do what Gareth Fatchett did and ask the industry to put its hand in its pocket," he adds. "We will be speaking to people with bigger pockets than me."
Lakey says whereas Fatchett's Keydata judicial review - which he hailed as "morally 100% right" - was doomed to fail because the FSCS had taken account of the law, Adviser Alliance has "at least" a two in three chance of success.
"We can win this one - the FOS and FSA have failed to take obey the law and this is now a matter for a judge to look at. We wouldn't be going down this route if we didn't anticipate success."
Meanwhile, Lakey reveals Adviser Alliance will be joining the European Federation of Financial Advisers and Financial Intermediaries (FECIF).
"We will enlist their help in fighting the RDR corner," he says. They will give us more inside information on what is happening in Europe."
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| Comment | IFA 20-year claim case reinvigorates long-stop campaign |
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MP expenses
does this now mean they will do away with the long stop relating to MPs expenses and go back to when they first started to abuse the system and trust put in them, and make them pay,
Posted by: Geoff
Deeper Pockets?
More power to your elbow Alan. We MUST show the FSA that they are not above the law and a victory on this one will hopefully give them pause for thought over some of the other illegal aspects of the past and the proposed future RDR.It would be nice to think that AIFA would dig into their pockets to support this initiative but I somehow doubt that. That leaves us IFAs to provide support, we all have extremely deep pockets dont we. in fact mine are now so deep that holes have developed at the bottom and everything pours out to the FSCS. Besides which the FSA have cut off my hands (and other extremities) and made my arms shorter thus preventing me from reaching into those deep pockets! Nonetheless I will contribute what small amount I am able, to support you, and I implore all other IFAs to do the same.
Posted by: Grosvenor
Deja vu
And it feels like we've been here before.
Posted by: Exasperated Me
i'm in...
we all as IFAs have a vested interest in this issue, i am willing and able to contribute, i urge you all consider the impact of not contributing. We must stop the relentless attact on our liberty and start challenging the dictatorship the FSA has become.
Posted by: Fraser Brydon - IFA
Long overdue.
Count me in Alan. This is far more important than Keydata etc though I paid towards GFs judicial review attempt. The removal of longstop is a fundamental breach of rights of the IFA. Good luck.
Posted by: Simon Kershaw
This must succeed
I am a retired IFA and have never had a complaint upheld. This is not to be confused with complainants who have tried..the last relates to mortgage advice given in 1988...before the April !!........................................................ Dealing with these cases takes time and a lot of concern. It is about time the FOS were required to follow the law. A "cheap" alternative to the courts shouldn't be a speculative version outside the law - especially for pre N2 complaints. The FOS should follow what the PIAOB would have done .................................................................................................... I must store several filling cabinets full of client files "in case" I need to defend a claim, but HMRC say I can't offset the cost of any storage against income tax because there is no provision in law for allowable expenses against any firm no longer trading. This is a double whammy and is very unfair............................................................................................................ I fully support any and all attempts to "return" our property, namely the right to choose to effect a Longstop defence if we want to on a case by case basis, as per the courts........................................................................ Is the FSA and FOS really so powerful they can ignore statute law confirmed as the property of every professional in the highest court in England... because that's what seems to be the case right now.
Posted by: Former IFA
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As this concerns all of us, let us know when we can help Alan.
Posted by: lol