A group of former Park Row advisers has set up a fighting fund to launch legal action against Park Row as they have been waiting months to be reauthorised and are still unable to service clients.
The group of 28 IFAs headed by ex-Park Row adviser Matthew Berry has contributed £7,000 so far to fund possible legal action through law firm Foot Anstey.
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.
Foot Anstey partner David Turner says although Park Row is no longer authorised, it still exists as an entity that advisers could pursue for damages. He says: “The position that advisers find themselves in is awful. They are qualified people and cannot practise due to a combination of the FSA’s over-regulation and Park Row’s alleged misrepresentation.
“If the group can show there was misrepresentation on the part of Park Row and they were in breach of contract, damages will be the lost opportunity to earn commission or revenue.”
Many of the 240 former Park Row advisers have been waiting since November to learn whether or not they will be reauthorised under new networks. The FSA is expected to reauthorise straightforward cases in the next few weeks, but other advisers will face further delays as the FSA reviews them more rigorously.
A spokesman for Park Row parent firm Royal Liver says: “Park Row is not aware of any legal proceedings, nor does it believe there are grounds for such proceedings. We sympathise with the advisers concerned but do not comment on speculation.”