View more on these topics

Abbey loses precipice bond plea

Abbey has failed in its bid to challenge the Financial Services Compensation Scheme’s legal authority to sue the firm for £21m for alleged precipice bond misselling.

The FSCS is suing Abbey as part of its attempts to rec- over claims that the scheme has paid out to a total of around 1,800 investors who were sold precipice bonds by IFAs which have since gone out of business.

Money Marketing understands that the FSCS is also looking at other product providers and could be using this as a test case.

Abbey had claimed the FSCS was acting outside its authority by trying to recover claims from providers.

But in the High Court last week, Mr Justice David Richards ruled that the FSCS could go ahead with its claim. Abbey has not decided whether to appeal. Pending any appeal, a hearing is expected in May 2009.

The products were promoted by NDF and the court heard that the FSCS contends that “the marketing mat- erial for the products failed to make clear the risks associated with them and that investors were induced to invest in the products in reliance on misleading statements and material omissions.”

The FSCS claims against NDF are for breach of statu- tory duty, negligence and misrepresentation.

The compensation scheme claims that Abbey collaborated with NDF in the development and promotion of the products and in marketing them to investors through IFAs.

Abbey says the plans and promotional material were issued by NDF and that it has no responsibility.

An Abbey spokesman says: “The judge has granted permission for us to appeal to the Court of Appeal in relation to his decision and we shall be reviewing this option in conjunction with our legal advisers.”

NDF managing director Paul Bispham says that the position of Abbey and NDF is that neither firm is responsible for the misselling of the products.

Broker Talkback, p22


Bank votes for rate hold at 5%

The Bank of England’s Monetary Policy Committee has voted to keep the Base Rate at 5 percent.

Aussie software firm joins Aifa

Australian software company Logic 100, which offers UK IFAs access to an holistic financial planning platform, has joined Aifa as an affiliate member.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm