Advisers told to band together to beat FSCS Keydata claims

Last month, Herbert Smith, the law firm representing the FSCS, sent letters to IFAs saying the FSCS intends to recover from them the compensation costs it had paid out to investors in Keydata. Late last week, it served legal proceedings on more than 500 IFAs to claw back the compensation paid to more than 5000 investors in the Keydata SLS products. DAC Beachcroft is advising firms to coordinate their responses and resources to have a better chance of beating the claims. "In addition to the SLS product, the FSCS has made it clear it is looking to make recoveries in relation to the L...