A group of 28 former Park Row advisers is taking its first step towards legal action against the former national IFA after mon-ths of being unable to service their clients.
The advisers are issuing a letter of claim to the firm, which is the first stage in the process. Money Marketing revealed in April that the group of advisers had raised £7,000 for a fighting fund for a potential legal challenge through law firm Foot Anstey.
The group, headed by ex-Park Row adviser Matthew Berry, will issue the letter alleging that the firm had inadequate compliance procedures in place which res-ulted in a breach of contract. The law firm is investigating the possibility that Park Row misrepresented the position of advisers looking to transfer to new networks following a proposed sale of the business. Park Row will have six weeks to investigate the allegations and establish whe-ther litigation can be avoided.
Foot Anstey partner David Turner says: “We are not commencing proceedings yet but are engaging in the preliminary process. Our preliminary view is that there is a case to answer and we are putting this to Park Row.”
Many of the 240 ex-Park Row advisers have been waiting for reauthorisation since last Nov-ember and have been unable to service clients since then. Some fear they may be pursued for professional indemnity excess payments relating to complaints from customers whose files were not vetted by the firm’s internal compliance. Aifa is understood to have brought up concerns regarding the treatment of Park Row advisers with the FSA.