The Association of Professional Financial Advisers (APFA) has called on the Financial Services Compensation Service (FSCS) to reach a broad settlement in its action against advisers who sold Keydata investments, saying small advice firms can not afford the cost of the court proceedings.
APFA warned the legal battles could put the remaining defendants, mainly small advice firms, out of business as they "don't generate the turnover or the profits needed to carry the cost of a court case and the claims raised against them". "It benefits no-one for firms to be put out of business by expensive court proceedings, as the cost then falls back on the industry rather than being recouped," director general Chris Hannant (pictured) said. The FSCS drew up a list of 15 lead case defendants in November, saying it had chosen the firms based on their ability to afford the case agains...
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