Rebus sells claims against IFAs for £100k

Rebus sells claims against IFAs for £100k

Failed claims management company Rebus has handed over its entire book of claims against financial advisers to a law firm for £100,000.

The Law Practice (TLP) agreed to buy the collapsed firm’s client contracts to pursue hundreds of outstanding claims.

An administrator’s report dated 2 April revealed that TLP must pay Rebus half of the gross profit it earns from the claims.

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Seven offers had been received for parts of the business, and the administrator said the sale to TLP offered the best return for the creditors of Rebus.

According to a notice on Rebus’s website, which appeared in February and was quickly taken down, about 1,700 clients stood to lose a total of £930m.

Rebus concentrated on those investors seeking redress for failings over negligent advice given by IFAs, and was particularly interested in complex cases involving tax avoidance.

The claims management company expected clients to recover losses from the advisers’ professional indemnity insurers.

In February, Mark Osgood, partner at law firm Moore Blatch, said Rebus clients typically stood to lose £100,000 each if their cases missed the six-year limitation cut off.

ReSolve Partners was appointed as administrator for Rebus Management Services, Rebus Investment Group and Rebus Investment Solutions in January.

Paul Harris, managing director of TLP, said ReSolve Partners was looking for a solicitors practice that could “immediately give the necessary levels of client care and expertise” and be able to meet the “stringent” time limits on recovering client damages to ensure the claims are secure.

Adviser View

Colin Low, managing director of Kingsfleet Wealth, said: “Where does it all end? Will the Crowdfunders want to litigate against Rebus? What about their clients? Who can they sue? “Unfortunately, I can’t see an end to this unless some form of caveat emptor legislation is specifically implemented. However, which political party would be able to do that?”