Tomorrow sees the first day of the windfall shares test case in which Needler Financial Services cha...
Tomorrow sees the first day of the windfall shares test case in which Needler Financial Services challenges the right of one of its clients to receive compensation for pension mis-selling liabilities.
Needler's PI insurer, Collegiate Insurance, claims it is unwilling to pay all of the £26,000 in compensation to Mr R H Taber, however, it is prepared to pay £16,000 as Taber has already received £10,000 in windfalls from the merger of Norwich Union and CGU.
Taber's argument will hinge on the Personal Investment Authority's perspective that windfall shares should be disregarded when assessing redress payable under the pensions review.
The hearing being brought by Collegiate Insurance, Needler's professional indemnity insurer is expected to last until Thursday will commence at 10.30am tomorrow in court 16 of the Royal Courts of Justice at the Strand, London and will be heard by the Vice Chancellor Sir Andrew Morritt.
Reynolds Porter Chamberlain, the law firm representing Collegiate Insurance and Needler, says the test case will decide the amount of compensation payable under the pensions mis-selling review where the investor has received shares following the demutualisation of life offices.
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