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Fighting fund appeal as court rules out windfalls

The High Court has ruled out the inclusion of windfall payments within pension review calculations in a decision that could cost the financial services industry at least £175m.

The decision, which will also serve as a precedent for FSAVC and mortgage endowment compensation cases, must be accepted by the industry if money cannot be found to fund an appeal, prompting a call by PI insurer Collegiate for an industrywide fighting fund.

Collegiate put up £250,000 for the test case brought by Needler Financial Services against Ronald Taber who was missold a Norwich Union pension. Collegiate managing director Tony Howe says: “We have a month to raise £300,000. If we don&#39t, there will not be an appeal. It is unfair to expect individuals to fund cases like this. We think there should be an IFA legal defence association.”

Pass chief executive Mark Penton says: “Setting up a fighting fund will be harder now, it is like saying we are 1-0 down in the last minute, do you want to back us now?”

Aifa director of policy and technical services Fay Goddard says: “It is a matter for the firms involved to decide whether to appeal. If an action is mounted we would have to look at whether to support it then.”


Scottish Life sales up 22 per cent

Scottish Life new business sales were up 22 per cent EPI for the first half of 2001 to £59.1m from £48.4m. Total pension sales were up 30 per cent £56.7m from £43.6m EPI and employer-based new business grew by 40 per cent to £34.1m from £24.2m. Group pensions increased 17 per cent to £16.8m from […]

Higher cost of compensation for lenders post N2

Lenders failing to correctly calculate borrowers’ mortgage repayments will have to pay substantially higher compensation costs under Financial Ombudsman Service rules after N2. In a feedback statement issued last week, the FOS dismissed lenders’ fears over the increased costs which could arise from not taking into account any past savings borrowers may have when calculating […]

TMO leaves tracks

The Mortgage Operation has unveiled the freedom mortgage, a flexible base rate tracker that discounts the Bank of England base rate by 0.45 per cent in the first nine months. This gives a current payable rate of 4.55 per cent and after the discount period, it will track at 1.2 per cent above the base […]

Southern Pacific discounts range by 1.25 per cent

Southern Pacific Mortgage Limited is offering a 1.25 per cent discount across its whole range of standard, buy to let and right to buy mortgage products, which include self certification options for both employed and self employed applicants up to 85 per cent loan to value.Sales and marketing director John Prust says: “The mortgage market […]


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