A barrister representing advisers fighting the Financial Services Compensation Scheme (FSCS) over Lifemark compensation has insisted the products were not high risk.
More than 500 IFAs are being pursued by the FSCS for mis-selling Lifemark-backed Keydata products, with parallel action in relation to SLS-backed products.
At a case management conference (CMC) this morning at the Royal Courts of Justice, Mr Justice Simon gave the order for the defendants to file their letters of response to the claims by 14 December, addressing the generic issues.
With the original claims letters sent out in April, the judge questioned why it was taking so long for the responses and defences to be filed.
However, Barabara Dohmann QC, taking instruction from Fishburns, which is representing a number of professional indemnity insurers, explained the complexity of the case and challenged the FSCS's blanket assertions that the products should not have been sold to most investors.
She said: "They were not high risk investments."
In the April claims letter, sent by lawyers Herbert Smith (now Herbert Smith Freehills), defendents were told: "Even without having conducted any of his own due diligence, any reasonably competent IFA would or should have known that the Lifemark Products were high risk investments or at any rate higher risk than was appropriate for the relevant investors."
Intrinsic will not have to meet the deadline for the letters of response as it is involved in separate litigation against its professional indemnity insurers over its coverage.
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