Financial Services Compensation Scheme  

Adviser lands at FSCS with claims worth thousands of pounds

But others are not convinced a long-stop will ever be re-introduced to the advice industry. 

Derek Bradley, chief executive of trade body Panacea Adviser, said: "The long-stop was removed years ago - had its protection been restored, IFAs would have seen any claim against them become unenforceable after 15 years had elapsed.

"This protection was enshrined for all within the Limitations Act 1980 and was removed for financial advisers by the government under FSMA 2000 legislation statutory instruments. In other words legislation with parliamentary debate.

"The problem with compensation is that there is a societal expectation, that if a loss occurs as a result of a client's retrospective appraisal or review of financial advice somebody else will cover the loss.

"If the firm is still trading they will. If not the FSCS will. A fantastic no-loss scenario."

rachel.mortimer@ft.com 

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.