The Financial Services Compensation Scheme is seeking to delay a crucial case management conference in its legal challenge against advisers to recoup Keydata compensation, Money Marketing understands.
In January Money Marketing reported the FSCS was seeking new lead case defendants as part of its bid to recoup up to £75m out of around £400m paid out in Keydata compensation.
The FSCS has written to a number of firms about becoming lead defendants after settling with several of the six lead defendants it selected last year.
A case management conference was due to take place on 21 March to discuss the selection of new lead defendants to take the case forward.
But FSCS lawyers Herbert Smith Freehills have requested the conference be delayed until May.
Beale and Company partner Damian McPhun, who is representing a number of firms in the case, says: “The FSCS is looking to push the conference back to give them more time to get their ducks in a row.”
The High Court requires lead cases to have a sufficient number of clients who were recommended both SLS and Lifemark Keydata products.
Lawyers had previously warned it would be difficult for the FSCS to select appropriate lead defendants after settling with the largest firms.
An FSCS spokeswoman says: “Due to the ongoing nature of the legal case, we are unable to comment at this time.”