An IFA who contacted his professional indemnity (PI) insurer to cover Keydata advice redress claims from lawyers for the FSCS has had his application rejected.
Law firm Herbert Smith is pursuing 530 financial firms for a return of the tens of millions of pounds it has paid out in compensation to investors in failed investment firm Keydata - paid for by intermediaries and fund managers in the form of compulsory industry levies. In a letter to one adviser, who asked not to be identified, the unnamed insurer stated it had investigated Herbert Smith's claim against it and concluded exclusions within the terms and conditions of the PI policy meant it did not cover the negligence action. The insurer cited exclusions for traded life investments and...
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