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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