The Financial Ombudsman Service (FOS) has revealed that it is awaiting a lead decision on investments in failed firm Keydata before it decides the fate of thousands of investors seeking redress.
In an email seen by IFAonline dated 6 November from a FOS adjudicator to an investor, the adjudicator writes that the investor's case is awaiting a decision by an ombudsman.
The adjudicator says that he is "of the view...that the complaint will be upheld".
However he says a final decision on the investor's complaint will likely be made only after a "lead case" has been decided.
"The lead final decision is supposed to be issued this week. That means the other cases awaiting a final decision should follow this," the email states.
The investor has had his complaint lodged with the FOS since April 2011.
Some Keydata complaints have already been decided by the Ombudsman service, but this is the first time the FOS has revealed it is awaiting a ruling on a lead case in order to decide subsequent claims.
Usually the Ombudsman service says that each case is judged individually and that a decision on a particular investment will not necessarily impact subsequent rulings.
A spokesperson for Regulatory Legal, which acts on behalf of clients invested in Keydata, says: "Keydata claimants will be really pleased that the lead financial decision is to be issued very shortly.
"The practicality is that people have waited in limbo for well over a year and are pretty frustrated."
A FOS spokesperson was unable to comment on the case.
The Financial Services Compensation Scheme (FSCS) has also pledged to continue pursuing advisers it alleges mis-sold Keydata products.
In July the scheme said it had "committed significant funds" to pursuing the claims in the next financial year.
The FSCS is seeking to recoup compensation it has already paid out to investors in SLS and Lifemark-backed Keydata investments from advisers it alleges mis-sold them.
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