Lawyers acting for the FSCS have sent IFAs who recommended their clients invest in Keydata - and who the FSCS has now paid compensation - letters of claim saying the scheme will pursue the firms for recovery of the money.
Regulatory Legal Solicitors has been consulted by IFA clients who have received a letter of claim from Herbert Smith solicitors acting for the FSCS. The letter has been sent to IFA firms where their investor clients have received payment from the FSCS in respect of Keydata claims. It sets out the intention of the FSCS to recover payments from IFA firms. The basic allegation is that the advice to clients was negligent and that the IFA firms should repay the FSCS. Firms who receive the letter are being invited to enter into a "constructive dialogue" with the FSCS before it issues ...
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