The Financial Services Compensation Scheme (FSCS) has begun proceedings against more than 160 advisory firms it alleges mis-sold Lifemark-backed Keydata products.
Its lawyers, Herbert Smith, has issued protective proceedings against a total of 162 firms relating to sales of Lifemark Secure Income Bond 4. The FSCS's aim is to recoup compensation paid out to investors in the product. A letter from Herbert Smith, sent to the advisers on the list, accuses them of a breach of contract, namely that they "breached their contractual obligations owed to investors, including in particular their obligations to exercise reasonable skill and care in advising them". The FSCS has also begun proceedings against firms that sold Lifemark Secure Income Plan 1,...
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