IFAs take FOS to Court of Appeal over Keydata redress

Laura Miller
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Three IFAs are taking their case to the Court of Appeal in a bid to overturn a High Court ruling backing a Financial Ombudsman (FOS) decision that they should pay clients compensation for advice to invest in failed firm Keydata.

Westcott Financial Services, CBHC and DTE Risk and Financial Management have lodged their case with the Court of Appeal after having lost their legal battle against the FOS in December. They were fighting a series of decisions from 2013 in which the Ombudsman found the three firms had given five clients unsuitable advice to invest in Keydata, and had ordered them to pay combined compensation of £362,000. The advisers wanted to delay paying the compensation until the Financial Services Compensation Scheme's (FSCS) legal battle with advisers who sold Keydata investments has been resolve...

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