Leeds adviser Lampott is facing a big compensation claim after recommending a £5.25m small business pension scheme to invest £2m in Keydata life settlement vehicle Lifemark.
Precision engineering firm Micro Metalsmiths, which employs 120 people, currently has 50 ex-employees drawing from the scheme. Lampott is expected to fight the claim on the basis that it did not decide on the proportion of the client’s portfolio that was invested in Keydata.
The Financial Services Compensation Scheme recently announced that it will cover Lifemark losses up to its £50,000 limit.
An FSCS spokesman confirmed that pension trustees may be granted the right to submit multiple claims on behalf of their members, where the total size of the scheme is above the limit.
Lampott IFA adviser Richard Lamborn says: “This is going through our claim procedure and it would not be appropriate for us to comment at this time.”