The Financial Services Compensation Scheme has offered Keydata distributors facing claims of less than £50,000 a 50 per cent early settlement discount. In its latest FSCS outlook, published in January, the FSCS said the adviser sub-class will foot the legal bill for pursuing IFAs who sold Keydata products, while any recoveries will be paid back to fund management groups.
Arch Financial Planning managing director Arthur Childs, who has one claim against him, has received the FSCS letter. He says: “I would expect most people with a small claim will accept this offer. Nobody wants the uncertainty of a court case.”