Keydata Claims

FSCS’s Lifemark action

The FSCS has paid out millions to consumers following the collapse of Keydata in June 2009.

In the last week it has instructed Herbert Smith to send letters to hundreds of IFAs relating to Lifemark products: the Secure Income Bond 4, Secure Income Plan 1 – 12 and Defined Income Plan 1 – 8, requesting early payment of claims. We understand that Herbert Smith will be sending similar letters relating to other products in the coming weeks.

From a professional negligence perspective, it is unclear how the FSCS and Herbert Smith have reached the conclusion that the advice on these products was negligent. No doubt the professional indemnity insurers of IFAs forwarded a letter will be examining the issues carefully.

However, IFAs need to ensure that they speak to their insurance broker or insurer as soon as they receive any letter from Herbert Smith. Even if no letter has been received it is worth speaking to your insurance broker to discuss whether a notification under your PI policy is appropriate.

However, if you have made a notification and it has been declined then please contact us as we may be able to assist. We are currently forming a group of IFAs which have Keydata exclusions, or have had Keydata notifications declined, which can share the legal fees involved in defending the claims against them, thereby massively reducing the cost.

Please email info@fenchurchlaw.co.uk
or call 020 7337 6116 and ask for Rob Fink